I bought to cover the futures contract I sold on the SP-500 several days ago - at 1313.00 As best as I can tell, "It is Coming" should have read "It is Coming, but Not Yet". I have been proven incorrect in thinking the SP-500 was going to crater from its 5 negative divergences. Clearly I underestimated the power of the FED's printing press activities.....which are temporarily able to overrun normal corrections with a flood of liquidity. Anyway, my two 'short the SP-500' with futures contracts has resulted in a net loss of $250. Ouch.
I have completed, more or less, the first 100 trades using my new trading strategy. What follows is a copy of the spreadsheet I use to keep tabs on how the strategy is doing from day to day. In brief, the buy signals are generated from a positive divergence with respect to the True Strength Index (TSI) indicator and the movement of price. The sell signal is simply, for this exercise, a 2% limit order. If price, after buying the open at the market, continues higher than 2% within the first 3 days, the trade is considered a success.
Anyway, so far 88 trades have completed the 3 day window and the results are in the 85% success range, which I consider a good start. Of late I have been just throwing in any stock that made a minimal positive divergence without any regard to other rather common sense considerations. And the results of the past few days reveal that this will not return acceptable performance......so back to using my brains a little, I guess. Truly, it seems nearly impossible to design a strategy that is purely automated and boasts a success rate above 80%. Any feedback or ideas, suggestions will be appreciated. tsiTrader@gmail.com