I just wanted to do a quick update on my futures swing trading system I’ve been developing over the past month. I was quite pleased with the results up until recently and feel like I’m back to the drawing board phase.

It sort of hit a wall when a number of markets hit buy signals at the same time and it turned out to not be the best entry when a number of them reversed shortly after triggering. In an attempt to deal with the volatility I’m lowering the number of contracts to one for the time being and I’m altering the buy signal. I could switch to eminis but for now I’m just using a regular contract on the Think or Swim platform.

I’m using the same signals to trigger a buy or short signal, but I’m adding another filter to help with whipsaws. I’m also taking profits a lot quicker. That way I’m not straying too far from what I’ve been doing, but adding enough of a change that may prevent entering a number of positions that could reverse. Let’s see how this effects the next 4 weeks of trading and I’m not going to bother to update the “latest trades” on the site since I’m changing the timing signals.

9 Responses to “Trend Trading Adjustment”

  1. abdul Says:

    This week suppose to be extremely profit trades for me but by friday closed, I gave back all the gains and also realized a loss of about 100 dollars. I now realised that I have commited one of the cardinal sins in trading and that is failing to take good profit when it’s out there in the hope that it could reach to my profit targets which is set to high. Big Big mistake on my part and now hopefully I will deeply entombed this lesson in my brain forever and I will keep reminding myself all the time that never turn a winning trade into a losing trade and set your profit target below the next resistance line and never be greedy in trading. If I could filter out these mistakes, I will be successful like only a handful out there.

  2. jeff pierce Says:

    Learning from your mistakes is a must in this business. Learning from the mistakes of others is something rarely do, but will put you far ahead of the game.

  3. rajesh Says:

    people are talking about s&p at 650 when even after europe isbankrupt and usa home and job market at the lowest and europe is far higher than 2009 lows and s&p almost double of 2009 lows. funny! just buy dips with stop of 10200 to 10400 fore targets of 13000 and 14000! i am sticking to this view till 10200 breaks.

  4. jeff pierce Says:

    the only reason to think the market can go up is because the fed is printing money. that is not a real reason to be bullish. it’s sad is what it is that our gov’t must manipulate the money supply like it does.

  5. The ScottTrader Says:

    Hello, I have been looking for traders who are quite active in updating their personal blogs and you seemed to be active! I have just began trading and was wondering what you thought the most beneficial aspect of keeping your trading progress public? Has it created a network of others that keeps you motivated, or is it something you learn from? Anyway, thanks for posting, and I will for sure keep checking in.

    ~The ScottTrader

  6. jeff pierce Says:

    Having an online journal benefits me by consistency and transparency and any input that readers my offer. There was a period last year when my blog was down due to my host and I felt somewhat lost during that time. I see that you are just starting a blog and I wish you the best in that endeavor.

  7. abdul Says:

    rajesh, you are right only if you are long on the S&P itself but most stocks have been underperforming the index for a long time now. They are underwater and many have been trading at the 52 weeks low. Look at the banking sector. This sector have been severely bombarded. S&P itself is holding up because of some strong sectors in the index like energy and material. This is divergence because in a strong market, all the sectors must perform collectively. Just my 2 cents thought.

  8. jeff pierce Says:

    All I see are lower highs everywhere.

  9. abdul Says:

    The US dollar will continue to be the main currency for world trades. USA will make sure that and even if they will have to bring down China or Europe to achieve that. Like it or hate it, it’s matter of America survival. They don’t mind weaker dollar but it must be accepted by the world. There is a conspiracy theory that say that Gaddafi was brought down because he tried to replace dollar to gold dinar.

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