System trades – Jan. 20, 2016

A weird day. Big gap down at the open, and for the first time I can recall, the price moved well below the Buy entry and stayed there. There was unusual trading during the day: the break down below the Buy level was precipitated by a large order (6,600 contracts) suddenly dumped in a consolidating market and covered immediately by an offsetting order 2 ticks away. This was just at the end of the first-hour range and it had the effect of dumping the market … Continue reading

System trades – Jan. 19, 2016

Nat’s ‘system trades’ on Tuesday illustrated one of the issues that still needs to solved: how to trade the price around the “control line.” After the chart is printed, its easy to see that the whipsawing around the “control line” (sort of a sentiment reversal line) was temporary, and the direction for the day was down. It might even have been possible to reach that decision from the decline in the pre-market, after a big ramp overnight on light volume. But the whipsaws were pretty substantial, about 10 … Continue reading

Nat’s ‘System Trades’

For the last few months Nat has been experimenting with a new method of calculating “inflection points” — places where she thinks the price action will demonstrate some kind of significant behavior. During the first two weeks of 2016 we’ve been applying these “inflection points” to a different kind of “system trading” and getting some phenomenal results — literally almost too good to be true. Things that are too good to be true usually aren’t, and we’re being very cautious about this. But the initial results are … Continue reading