I realize I haven’t posted anything new in a while. I recently returned from my European trip. The Technical Analysis Expo was a lot of fun. I had the pleasure of meeting a lot of new people and gained some great new trade ideas as well. There was a lot of new interest in the SST. After that, the Live Training in London, a little bit of fun (apparently it was the most beautiful weather all year when I was there), and then back to the States.
Since being back, while I’ve been quiet on this blog, I have not been idle. In fact, I have been working hard an some new SST Pro Tradeplans, one of which I just releases recently, The Russell 625 Tick Daytrade Plan.
We’ve been trading the Russell the same way for so long that I have typically have focused on other markets. Market conditions have definitely changed though. Surely you must have noticed the dramatic contraction in range. Not only in the Russell of course, but pretty much on ALL markets.
You might think that when range contracts, moving to a smaller timeframe might make more sense. Smaller targets. Smaller risk profiles. Actually though, I believe the opposite is true. I think slowing down the timeframe offers its own unique virtues, which is why I focused on a slower Russell tradeplan. Slower timeframes can often help filter out market noise. You get less setups but it’s a matter of quality vs. quantity. The important thing is to adapt to the changing market conditions.
It’s likely that we’re out of the doldrums for the Russell. March was one of the toughest months ever. Since getting out of it though, our original 377 plan is up over 30 points and is getting closer to new annual highs. Today we had two trades, both full winners for + 7 points with the 377.
Still though, for those with more patience, I still believe the slower timeframe will ultimately yield better results. For example, today the Russell 625 tick had 3 trades, ALL winners. Net result was +18.3 points! That’s $1,830!! The TF 377 only grabbed + 11.3 points all week!
Remember, the SST, SST Pro, SSTX, SST Whatever, is a TOOL SET combined with a Philosophy that puts the odds in our favor, when traded and used as intended. We’ll hit a bump in the road once in a while, but ALL trade methods will get bounced around from time to time. As we have seen all along, the SST continues to put us on the right side of the big moves and aggressively cuts risk, puts us in risk free positions as often as it can, while keeping the odds working for us, on every trade. It ultimately gets back on top, recovering quickly from tough trades, tough sessions, tough weeks.. Even tough months like we saw this past March.