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Pessimism One

Posted by David Bean on

We like to take advantage of high frequency trading equity curves with our Money Management Algorithms. Here are some examples.

From this example, we call our new strategy Pessimism One. The way it works is that it takes dual moving average crossover trades on 15 second charts by starting when the strategy is down $100. The high frequency nature of this strategy doesn't give the strategy many opportunities to ever be up or down $100 per contract. So when it is down by $100 then it has the opportunity to mean revert. Mean reversion can be ideal in choppy/trendless markets and we know that most of the time, markets are choppy and trendless. The strategy was up this week and captured a long trade yesterday morning and the short trade yesterday afternoon. 

The stock indexes have been choppy this since the market has developed the habit of waiting for news events and then chopping. Gold trading was the highlight. The weekly updates will be out tomorrow. Looking at some new portfolio updates for Q2 that we will send out next week!

 

 


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