Posted by James_Roe on 5th of Aug 2022 at 06:21 pm
We get an email like this every couple of months:
"Since you asked. I am not taking these trades because they are
all very confusing with TOO Many systems with all kinds of trades
at the same time, up down and all around. lol!"
On some level I understand it, we do communicate a lot about the
systems, and at the moment we have a long and a short ES position,
but that's the wrong way to think about the systems.
There are 21 different trade types on 2 different instruments,
ES and SPY, but it's better to think about each trade as a separate
stock. The Hi Mid Low short position we took yesterday is usually a
very short trade, it will likely only last a few days, in fact it
almost closed today before the EOD rally. While the Long position
off our Long Bear trade is now almost a month old.
Ultimately how you trade the systems is up to you, you could
take a short signal and use it to lighten up your long position, or
you could play both trades with the expectation that the short will
close quickly while the bear long could be holding a while,
regardless of what you do though the systems have been killing it
lately, the last Hi Mid Low short only lasted a day but was almost
a 1% return.
If you have questions about position sizing please ask, but
hopefully you've been taking these trades.
Well said James. I have been a member for 3 yrs now and the
system trades have been fantastic. I really like the addition of
the ES/MES. I hope Matt will reconsider keeping that one long term.
You don't have to deal with option theta decay or higher prices due
to volatility, and there is the tax benefit of trading futures over
stocks/options. The stats have been quite good since we
started tracking at the beginning of the year.
It has been interesting to see how much more these systems trade
in a more volatile bear market than a grinding up bull market. So I
can understand the confusion, especially if someone is relatively
new. As others have mentioned, pick a system trade, follow
the signals for that system, and don't concern yourself with any
additional systems trades that subsequently trigger.
Thank you to you Matt and Steve for all you guys do.
Posted by kevindeng0727 on 5th of Aug 2022 at 06:46 pm
Agreed - trading is always an art that everyone does
differently. I was trapped by some signals during the covid crash
and was reluctent to buy for quite a while as well, but the system
now seems to be working really well in this bear market after Matt
refined it after covid.
I look forward to more trades as well, in particular with those
ETF trades are being implememted.
Well stated. If anything, I'd like more system trades!! It makes
managing emotions easier. For those that aren't sure what to do
with all of the system trades, you could pick to only trade certain
setups. In other words, pick to say only trade the QE longs and
shorts system, and don't trade the other 19 systems. This goes back
to you figuring out what works best for your situation. The
systems are tools we can use to determine
non-emotionally/non-subjectively entries and exits. If you don't
understand how to manage taking long and short trades at the same
time, then pick one sub-system and only take those trades, that's
going to be the simplest way to do it. Go look at the stats under
the Systems tab, find the system that has the best win rate or the
one that triggers the most often and just trade that one. Overtime
you'll get more comfortable playing more of the different systems
both long and short system trades at the same time.
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We get an email like
Posted by James_Roe on 5th of Aug 2022 at 06:21 pm
We get an email like this every couple of months:
"Since you asked. I am not taking these trades because they are all very confusing with TOO Many systems with all kinds of trades at the same time, up down and all around. lol!"
On some level I understand it, we do communicate a lot about the systems, and at the moment we have a long and a short ES position, but that's the wrong way to think about the systems.
There are 21 different trade types on 2 different instruments, ES and SPY, but it's better to think about each trade as a separate stock. The Hi Mid Low short position we took yesterday is usually a very short trade, it will likely only last a few days, in fact it almost closed today before the EOD rally. While the Long position off our Long Bear trade is now almost a month old.
Ultimately how you trade the systems is up to you, you could take a short signal and use it to lighten up your long position, or you could play both trades with the expectation that the short will close quickly while the bear long could be holding a while, regardless of what you do though the systems have been killing it lately, the last Hi Mid Low short only lasted a day but was almost a 1% return.
If you have questions about position sizing please ask, but hopefully you've been taking these trades.
Well said James. I have
Posted by craigm on 5th of Aug 2022 at 07:44 pm
Well said James. I have been a member for 3 yrs now and the system trades have been fantastic. I really like the addition of the ES/MES. I hope Matt will reconsider keeping that one long term. You don't have to deal with option theta decay or higher prices due to volatility, and there is the tax benefit of trading futures over stocks/options. The stats have been quite good since we started tracking at the beginning of the year.
It has been interesting to see how much more these systems trade in a more volatile bear market than a grinding up bull market. So I can understand the confusion, especially if someone is relatively new. As others have mentioned, pick a system trade, follow the signals for that system, and don't concern yourself with any additional systems trades that subsequently trigger.
Thank you to you Matt and Steve for all you guys do.
is there a video on
Posted by jcm2323 on 5th of Aug 2022 at 07:37 pm
is there a video on how to utilize the system trades?
Agreed - trading is always
Posted by kevindeng0727 on 5th of Aug 2022 at 06:46 pm
Agreed - trading is always an art that everyone does differently. I was trapped by some signals during the covid crash and was reluctent to buy for quite a while as well, but the system now seems to be working really well in this bear market after Matt refined it after covid.
I look forward to more trades as well, in particular with those ETF trades are being implememted.
Well stated. If anything, I'd
Posted by focus175 on 5th of Aug 2022 at 06:28 pm
Well stated. If anything, I'd like more system trades!! It makes managing emotions easier. For those that aren't sure what to do with all of the system trades, you could pick to only trade certain setups. In other words, pick to say only trade the QE longs and shorts system, and don't trade the other 19 systems. This goes back to you figuring out what works best for your situation. The systems are tools we can use to determine non-emotionally/non-subjectively entries and exits. If you don't understand how to manage taking long and short trades at the same time, then pick one sub-system and only take those trades, that's going to be the simplest way to do it. Go look at the stats under the Systems tab, find the system that has the best win rate or the one that triggers the most often and just trade that one. Overtime you'll get more comfortable playing more of the different systems both long and short system trades at the same time.