I have been very pleased with the last two years of trading. But in the last month or two, I feel that I have lost my compass as sector rotation continues to see saw back and forth. I searching for a trend!
It doesn’t sound like you have an exact strategy?
Michael. Oh but I do. I use a combination of Chaikin Analytics and Ichimoku and more. Chaikin provides choices and timing. 27 factors measure fundamentals displayed as red Bear yellow neutral and green bullish. Chaikin Money flow shows institutional buying the oscillator show over sold over bought and relative strength shows strength vs SPY ( I know you hate benchmarking). Screening capabilities and signals also compliment the package. Approach is to identify best assets class sectors then find the best stock or commodities within the sector (or if playing from the short side the worst. Bottom line finds me stocks to consider. Ichimoku gives direction ADX movement potential. With risk management of 3 times the Average trade volume to get out of the trade I don’t use price targets or length of time. As mentioned below right now I’m struggling with finding what are the best sectors. VALUE Real estate | Utilities health care and consumer durables are in a tug of war with GROWTH Tech, Energy, consumer discretionary. I’m of the believe that we are undergoing a rotation but can’t find a direction, thus no trend should just mean I should go on a fishing trip and come back when the markets make up their mind! Each year I have a 30 page document that outlines my trading discipline, strategy, risk management, diversification, position size and more. I am reading your trend following book a chapter a day and have enjoyed the concept. I particularly enjoy the quotes on the side. Today’s winner was Aristotle We are what we repeatedly do. Excellence is not an act, but a habit.
That is all a dead end. Every bit of it. This is straight from the numerous technical analysis cookbooks out there. Run!