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Futures Trading Room – July the 14th Overnight Overview

July 22, 2016

This is the alert I sent to subscribers:

The following patterns are triggering:

SHORT PATTERNS 51-111-141-258-357-359 (PRICE-RSI)

I will enter SHORT.

ODDS MAP   0,66 – 46 – 37

Notes:

Stop Loss = 28 ES points

Profit Factor = none

We had 5 up gaps in a row. It only happened other 2 times in the past 20 years. Both opened down the next day.

Another painful trade despite strong bearish evidence. Sometimes can be frightening shorting all time highs, but if we backtest it, we get the following “nonsense” equity curve (shorting all the nights when today’s high is the all time high on SPY):

MAXS

And below is the same backtest but with today’s close at all time highs:

MAXS1

There are some hot long streaks and some hot short streaks. Mixed and too general edge to be considered. So there was nothing wrong with our last bad trades, they were just bad!

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