This Is Why I Wait

StatsEdgePro

Let’s chat quickly about adding decestion to our systematic trades. We have had a few triggers from our pullback algo (returns pictured below) that I think help with a good learning lesson about how to I add my “trader mind” to my systems.

As you can see from the returns they are pretty good netting an average of 25% per year with a 20% max drawdown. But of course not perfect with some unprofitable periods like any system. I always attempt to smooth these returns some with my techinal analysis skills and keeping an eye on the markets.

Let’s look at 2 trades that triggered over the last 2 weeks one I took and one I passed on for some of my thought process.

Trade 1: MNKD 0.00%↑

This one triggered on friday where the market was selling on the candle with the blue arrow under it. Let’s focus on 2 things.

• It bleed through the algo entry price closing with a nice wick showing some buying comming in later in the day.

• Second is what the market was doing at the time selling off and closing at lows shown by this highlighted selloff candel in the SPY 0.00%↑ .

If you combine these 2 it seems reasonable to think there is more of a chance that this has come buyers in it.

Trade 2: CAG 0.00%↑

Let’s look at the one I skipped just today with CAG. This is the polar opposite of the one above if you look at the points I made above.

Check out the intraday chart where it sliced through the price only trying to bounce for a second intraday. Also very important to note that on this day the SPY and QQQ up over 1.5%.

This is all talked about in the statsedgepro trading room if you are a member make sure you check it out and if not give it a try in the button below. We combine backtested statistical edges with techinal analysis common sense to make simple trading decisions.