The call is 90% long China and 10% long dji.
I will trade at 90%. Will update.call stands.
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Trading Blogs
About Me
- Forecaster
- I originally developed this stock market timing system to trade leveraged mutual funds within a retirement account. It appeared that traditional "buy and hold" strategies would not generate the returns I desired in the time frame I needed. I wanted a mechanical trading system that took the emotion out of making decisions about the future moves of the markets. This system gives a "end of day" call for the next days market direction. On some days it requires some input from the trader as the signal may be dependent on the closing price of a particular index. It can be traded using etf's or mutual funds. This blog is for entertainment purposes and to track the development of this system. It is not intended to be used as advice. Use at your own risk!
Have you ever thought of using options instead of the underlying? I've sort of been watching your system for a while and it seems that using options may prevent those days like yesterday.
ReplyDeleteKeep up the work.
John
Hi, John...do you mean use options to hedge a position? Some of my trades are in IRA's that I trade Mutual funds that lock me in for the day. Sometimes that works out if the position rebounds late in the day and otherwise I might have stopped out. But I would rather trade with a loose stop for those days like Tuesday.
ReplyDeleteI meant that because of the convexity in options, for day trading, the outright purchase of an option may give a better risk/return profile, but in IRA's that may be a problem.
ReplyDeleteKeep up the good work. At least it's refreshing to get a straight up or down opinion.
John