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 to the lowest price in … 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 points above and below the … 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 much more than promising. This … Continue reading