Marko Kolanovic is JP Morgans top quant analyst. He has some interesting CNBC interviews about a market bounce and future flash crashes. While many are pointing to a 1987 crash again, he is calling for a bounce starting today and into next week. It will be interesting to see if he is correct. The 52 Week New Lows have out paced the 52 Week New Highs for 20 days now so the market still looks weak to me. A counter trend bounce can happen at any time though.
Tick Count Trend has been one of our favorite strategies in previous years. 2013-2015 did not provide enough volatility and range for that strategy so we placed it on the shelf. Since volatility is back, we are "dusting it off" as we review recent hypothetical results in Tradestation and NinjaTrader 8 using several different scenarios. It also works in MultiCharts.
I really like the setup with a $300 per contract stop loss and either an $800 profit target or no profit target. This gives you the opportunity to capture a big winner like the long trade on Tuesday or some of the short trades this year. Some of our strategies gave us the opportunity to capture nearly 100 point moves in the S&P in January/February. If you can put yourself in a position to capture those types of moves and manage your risk, it is a favorable approach.
Cut your losses, let your winners run. If you have this strategy and need help setting it up again, or if you would like more information about this strategy, Contact Us.