Russell eMini; Record Profit Levels Continually Being Blown Away with the SST

It was another ‘Chamber of Commerce’ day as one member put it, in the live traderoom today.  Winner, winner, Prime Rib dinner!  After a difficult March for the Russell eMini and a tough May for our Crude Oil 377 plan, the SST has proven itself yet again, with its resiliency and its uncanny ability to recover quickly and — with a strong punctuation point.  Here’s a brief recap of what we’ve been doing lately.

Russell eMini: This has been our flagship and longest running tradeplan, going for over 26 months now.  Today it went 3 for 3 with a +3.5 point session.  Yesterday it also was 3 for 3 gaining +4.5.  But that’s just a hint of the real story.  The real story is that as we opened 2012, it shot out of the starting gate stronger than its very strong 2011 finish.  Then in March, the market went into ‘nasty’ mode, and it hit the skids.  We experienced the hardest month since the tradeplan was released.  We already knew that this time of year had been a hard ride, both one and two year’s prior with this tradeplan.  But this time around it was particularly tough.  This scared off a lot of inexperienced traders, and who could blame them.  Unless you had the bigger SST vision (which would provide a support level of confidence necessary to ride out the storm) we gave back all of our gains for the year and even a little more.  That is always unpleasant and difficult to stay with, for sure.  Of course the lesson here might be to avoid the Russell eMini from mid Feb to mid April.  Plan your next vacation around that time period, in other words.  What a difference that would make to the annual results!

We’ve seen over the last few years that come April, things really start to heat up again for us with the Russell and the SST, so make sure you’re back by then!  This year was no different.  Since ending March, the Russell has been on its hottest winning streak yet, winning 74% of its trades and more importantly, gaining +151.6 points with a 1.94 profit factor.  That’s with our tight power of quitting approach.  It has put the March drawdown completely in the rear view mirror.  In fact, it is sitting at annual profit levels and all time record ‘lifetime’ profit levels.  We knew it was going to happen, but that didn’t make the dark sessions of March any easier.  Currently though, it has won 12 of the last 13 trades and 40 of the last 47 sessions!  It has a 100% weekly win rate over the past 9 weeks as well.  That’s how one hits new equity highs.  With a punctuation point! 

Another lesson to be learned is actually quite obvious if you think about it. And that is that there will always be a worst session of the year.  There will always be the worst week of the year.  And there will always be the worst month of the year.  Even the best tradeplans will have a bad month once in a while.  As traders, we need to plan for this and to understand what that could mean to your overall results.  The remedy of course, since we are all geniuses with 20:20 hindsight vision, is a small recipe of items:

  1. Bigger perspective which gives you the proper belief structure and confidence
  2. Adequate capital to trade your chosen market
  3. Diversification; when you struggle with a proven tradeplan, which doesn’t mean the tradeplan is BAD, only that it is having a set back, then you can rely on your other diverse tradeplans to support your equity levels
  4. Appropriate money management techniques
  5. Discipline and a non-negotiable professional approach to the markets.
  6. Reflection

Did I miss something?  I think that covers it.  I left a number 6 for you to ‘reflect’ upon this recipe, and if you’d like to add something, feel free to comment.

9 Week Equity Curve

We can pretty much say the same story with Crude Oil.  It had its difficulties too.  But it is back!  Again, a long time running tradeplan that has proven itself over and over again.  It too has broken out to new profit levels, putting the tough month of May behind it.  Today it gained +.94, which in case you don’t know, is +$940 on two trades.  Yesterday it won +.91 on three trades and is up $1850 for the week, winning 4 out of 5 trades.  Crude Oil is up +12.62 for the year, without the use of any money management strategy.  In other words, just the straight vanilla SST 2 position approach.  Today’s winners put it at record profit levels.

There are so many other great stories to talk about.  Our EURUSD 5 Minute chart is at record profit levels for the US session.  That’s quite a statement considering how low the range has been this year.  It is a very stable tradeplan, aggressively putting us in risk free positions, which has supported the equity growth.  Nearly HALF of this year’s trades have been breakeven trades which is why it continues to hit new profit levels, slowly but steadily.

Wheat Futures are also hitting on all cylinders, despite the change in the electronically traded trade hours.  Today we avoided an obvious addon short.  The art of trading can not be, nor should be avoided at times.  In so doing, we went two for two in 15 minutes, gaining +11.25 for over $550.  Yesterday we were one for one for +3.50.  Wheat has won the last 8 out of 9 trades for us.

Many of our newest swingtrade plans for stocks and ETFs are also humming along.  We’ve got winning positions on many of the newest tradeplans, including the QQQs, the Russia Fund RSX, our Corporate Bond ETF (HYG), Our India Fund (EPI), our Junk Bond Fund (JNK) and so many others.  Netflix (NFLX) just triggered long.  Google just had a winning GetBob short trade.  AutoDesk (ADSK) just went long, etc., etc.. 

That’s not to mention all the great forex trades too.  So many!  As the SST approaches its 2 year anniversary, we can feel pretty good to see it continue to prove itself, over and over again, standing the test of time and overcoming whatever short term hurdles the markets throw at it. 

There’s no way to win each and every trade.  There’s no such thing as the holy grail of perfect trading.  That’s a fool’s pursuit, really.  Send me $100 and I’ll sell you a map to the pot of gold at the end of the rainbow.  The good news is that we don’t need the holy grail to prosper as traders.  We just need a method that continues to work for us, by putting the odds in our favor on every trade.  As long as YOU the TRADER responsibly run your trading business, with discipline and correct fund allocation and management, YOU can be successful in this business and THAT is the real holy grail of trading.  MAKING MONEY!  The SST isn’t the only way.  But it IS a way, and a darn good way, at that..

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