Three ways to crush the markets this year

bull markets strategy Feb 15, 2021

In todays Trading Lab livestream session we covered three freaking outstanding setups currently playing out on $NQ/QQQ. We also went over a unique way at capitalizing on Bull Volatile regimes with very little risk. 

This year has been epic, the $NQ has been amazing for many traders in the Trading Lab. This has been one of my biggest years to date, as well as many others in the Lab because of how we played the $NQ off the lows in April, protected ourselves the end of August and got back long with 8 buys since the September lows. 

In the trading lab we absolutely crushed $NQ this year!

Not just on the end of day swing trading/position building, but we've been day trading $NQ in a very organized and effective systematic approach to discretionary trading. 

Having a strategy for the most dominant market regime is how the big money is made. As we covered last week the "Blended Bull Quiet" Regime accounts for nearly 80% of all trading days the last 20+ years. So it's really an important place to focus your attention on. 

While Bull Quiet (Blended bull quiet) last the longest, Bull Volatile moves the furthest & Fastest. 

While Blended Bull quiet accounts for nearly 80% of trading days, Bull Volatile accounts for less than 10% of trading days the last 20 years. But the moves in Bull Volatile are often times larger than the entire Bull Quiet move. 

The lower-middle skill trader will focus on the Bull Volatile move because the size of the move is so appealing, but the risk levels are so elevated, it usually blows up accounts. 

In the Trading Lab today we went over a strategy to get positioned to capitalize on massively violent Bull Volatile regimes with very little risk and excellent reward profiles.

If you haven't absolutely crushed this year, you should really consider joining us in the Trading Lab. 

Trading Lab

Up next, the Santa Claus rally that everrrrrrrrryone goes on and on about every single December. 

People bring it up as if it is this big mythical event that magically arrives at some unknown place in time and rallies for some unknown amount of time. It is fine if you want to go on believing in Santa Claus and magic reindeers, but the Santa rally is actually quite easy to figure out. 

If you've done the work in the Systems Mastery course, you'll know exactly how to make this happen. I will give you a quick overview. 

Simply pull up a daily chart of S&P500 and/or $NQ and go back 20 or so years. 

Then look at where on the chart where it goes higher.

Then do that the next year, and the next and the next. 

And of course look at where the price stops rising. 

This is your first run through, it won't be too precise, but you'll start to get an idea of generally when the Santa Claus rally happens...or if it is just a hoax. 

It's like "warming up". You are getting your eyes and mind around what you are going to dig deeper on, identifying patterns.

You can do all that work, iterating until you find the most robust entry/exit, or you can check out this post on the Quantifiable Edges site.

I tricked ya there!

Now the next time you hear someone on TV or writing somewhere about the mystical Santa Claus rally, you can be extra cautious that they might not know as much as they seem to, if they can't think critically enough to google "Santa Claus Rally quantified" or do the work themselves!

Have a wonderful Monday everyone!!!

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