Sunday, May 22, 2022

Trading (experimental)

First I determine the general direction of the market. 

In my view we are in a bull market when price is above 144 day SMA and in a bear market if price is below it.

In a bull market I either have no position or I am long ("buying the dips"). In a bear market I either have no position or I am short ("selling the rips").

Bull market. I go long, if I choose to, remember no position is an option, immediately after 1) price moves, has moved, above 8 day EMA and at the same time 2) 8 day SMA is above 20 day SMA. I exit long, if I choose to, when SSO is above 80 and/or VOL is below 20, but no later than when 8 day SMA moves below 20 day SMA (ultimate stoploss).

Bear market. I go short, if I choose to, remember no position is an option, immediately after 1) price moves, has moved, below 8 day EMA and at the same time 2) 8 day SMA is below 20 day SMA. I exit short, if I choose to, when SSO is below 20 and/or VOL is above 30, but no later than when 8 day SMA moves above 20 day SMA (ultimate stoploss). 

This is not investment advice. Do your own research. Please also read the disclaimer at the bottom of the blog.