How I Luck My Way Into Low Risk High Return Trades
If you aren’t a part of the Pollinate Trading Lab you are missing out! We have a great bunch of traders in there now sharing backtests, setups, knowledge, code (for those of you who are interested in using AI and algo’s), we even have a shared Google Drive of all our resources available for members.
This is not a signal service, don’t join if you want someone to tell you to buy $F stock at X price or short $FB or whatever.
Rather if you want to have access to a bunch of real traders who are talking about the various setups they are seeing and what they are looking at doing in the markets that day, this is the place to be. We have traders from hedge funds, prop traders, family office traders and professional traders who have been trading for years (decades).
If you find trading to be isolating and have questions but just don’t know who to ask, how to ask it or simply want to have a place to bounce ideas off other like minded traders, JOIN US...
Market Regime Types - Getting Started
Earlier this week I wrote about trading the different Market Regimes based off of the SQN Indicator. To be clear, there are a number of ways to go about categorizing Market Regimes, and the SQN is just one of them.
Being able to categorize a market by regime is extremely useful, but without knowing the characteristics of the regimes (and how to exploit them for profit) is where the real power is.
Let's look at a couple of different ways to categorize market regimes.
Macro Economics - this is probably the most quoted and talked about in business news, think interest rates, unemployment, growing GDP, PMI's, etc.. You will find no shortage of market categorization and predictions from this regime.
Low Volatility/High Volatility/Trending/Mean Reversion - One of my favorite and most useful ways to categorize a market regime. This can be done using indicators like SQN and ATR (which I've written about before). These are derived from the actual price direction or the...
Systems Trading Long and Short Term Podcast
Today Chris does a solo episode going into how he uses systems for long term and short term investing and trading the markets.
It all starts with market regimes and matching the assets/markets incentives to that regime.
This episode is sponsored by Spotify!
Listen to it on Spotify or search for The Market Gaggle on your favorite podcasting platform
Systems Trading vs Price Action - How To Get Lucky
I got a lot of emails and DM's from traders asking me my thoughts on where the market is going to go from here, what's my price target?
The truth is, I don't look at markets that way. When I got long $NQ Futures back at around the beginning of April, I wasn't planning to be on the doorstep of 10,000 NQ by summer.
And to be clear, this is not a victory lap of me catching the bottom and piling in long from the very bottom and buying a Lamborghini. Nor was this a VBO or FVBO trade, this was me applying my knowledge of price action and how it (price) behaves in different market regimes.
Me getting long on April 5th was not expected to be a 2000+ point winner, with multiple adds to my positions. I had no special perspective on where I thought the market was going to go and I certainly didn't expect to be putting in new highs with all that is happening in the world.
All that is happening in the world and what we were dealing with on April 5th had nothing to do with my decision...
Systems Trading Multiple Strategies To Actively Manage Your Investments
Yesterday I talked about using an adaptive position sizing algorithms matched with the SQN of each individual asset, stuff we will be going deep on in the Trading Thunderdome. And to say this sparked a number of questions, is an understatement.
I know a lot of you are interested in that sort of information and I'm working on delivering some deeper info there for you, but it'll be a few days.
Another interesting question I was asked was about trading multiple strategies or go all in on one.
This is a question that gets asked a lot.
The best I can offer is what I do.
I run three main strategies.
The Global Macro ETF Long Term strategy.
This trades ETF's of countries, commodities, indices, interest rates and other Macro assets. Each asset within the universe has been backtested using the techniques that I teach in the Systems Mastery Course. Average winning trade stays in a position for over two years and the average losing trade exits before the first...
Systems Trading VS Price Action
Systems Trading Vs Price Action
I've been having a loooot of discussions recently about why I keep calling the current Bull Quiet market regime, well a Bull Quiet market regime.
To be clear I've been calling this current market (in Equity Indices) a Bull Quiet regime for over a month, and you are more than welcome to have a crack at the livestreams I was doing on YouTube last month to see my thinking here
Bottom line the big tell was that the market was showing off these AMAZING sell setups, on $NQ and $QQQ day after day, only to see them stopped out and the price powered higher.
In fact the biggest tell was the power reversal of that major low, when the world was at its most pessimistic and the central banks worldwide stepped in, in a big way.
As systematic traders here we don't care about the news that caused it,...
The Trading Thunderdome - How To Become A High Level Trader
In yesterdays email I answered some of the questions I had sitting in my DM's about prop trading. And a bunch of you hit reply to the email to ask a few more questions about prop trading. I honestly didn't realize that there were so many people with so many questions about getting in to prop, so I went ahead and expanded it and put it on the blog.
Bottom line, if you are a profitable trader, I can't think of any reason why you wouldn't take prop money to lever up.
On to more important subjects...
The Trading Thunderdome
Yes that is a Unicorn rocket ship and so is the Trading Thunderdome!
What is the Trading Thunderdome you ask?
It is an intensive 8 weeks of mentorship by me with a group of trading peers.
We meet via Zoom 2-3 times per week for at least 2 hours per day. The first hour is classroom time where I train you on some subject focused on mastering your trading.
The second hour is class peer review where you each present your most recent...
Why Become A Prop Trader
| This weekend when I started writing todays email, I was going DEEP on things like why trading USDCAD using the FVBO setup in sideways neutral and sideways volatile regime with 4.6% risk and in fact why only trading sideways neutral/volatile with much higher risk might be a better strategy than trading any other. All insights that we are revealing in the Trading Thunderdome. We are digging deeper and learning more and more with each day. BTW we are launching our new batch in July, 10 traders max. You need to apply and be accepted first, so get after it! And then I checked my DM's...I don't check them all that often, especially from people I don't know, but today I did. It seems that I'm the guy that everyone is asking about how to get into prop trading. Actually, people have convinced themselves that they can't get into prop trading for one reason or another, so I decided to share some of their questions. What is prop trading? Prop trading is... |
Macro Meets Crypto With Carter Thomas
Yesterday I chatted with futures and crypto trader Carter Thomas
For the podcast you can click here and then choose whichever podcast platform you prefer
https://anchor.fm/macro-ops/episodes/Futures-and-Crypto-Trader-Carter-Thomas-ecr9lq
Or watch the video on YouTube
Another amazing thing, Maverick Trading sponsors the podcast now, if you want to know more about prop trading I can't recommend them enough. I'm also a mentor there, so when you do join and go through the program you will have me to talk to, hah!
Why trade prop? If you are an individual trader, I can' t think of any reason why you wouldn't want to trade with a prop firm.
They literally give you a money to trade, they lever you up.
I've been with Maverick for about 5-6 years now and I can't say a single bad thing about it.
If you are profitable and can play by big boy/girl rules, then get after it
Forex http://bit.ly/2SXPFWL
Options http://bit.ly/38KbLmn
How We Find The Ideal Trading Strategy For Different Market Regimes
Knowing how to trade in different Market Regimes is just as important, if not more so, than what to trade. So what is a Market Regime?
A Market Regime is a quantified method of organizing the characteristics of different trading environments. We have five:
- Bull Volatile
- Bull Quiet
- Neutral
- Bear Quiet
- Bear Volatile
Each regime is a measurement of direction of travel of the underlying asset, Bullish, Bearish or Neutral.
And further organized by Volatile or Quiet.
This is measured with a tool called the System Quality Number (SQN) you can view a video about it here. The SQN measures the average % change from close to close of the previous 100 days and then square roots it. This is how we quantify bullish or bearish, if the change is positive on average for the past 100 trading days, that’s bullish and likewise bearish if negative. Then as the % change increases it becomes more volatile and decreases that’s less volatile. A nice quantified methodology to measure.
This...
