Amen to that! Whether position or day trading, position management is a very important part of a plan.
Client one-on-one meetings this week. Breaking down trades, position management, and diving deep into performance.
@bone You’ve already alluded to this in your comments so I thought I would follow up…do you have any thoughts on running trend trading system with a portfolio of 30+ spreads? Since mean reversion seems to be less effective, is the trend following approach effective?
Great question and thanks so much for posting I’ve always felt that legit inter and intra market spreads (not arbs) tend to model and trend much more predictably than single name flat price instruments. We use an indicator package that I’ve developed over the years expressly for spread trading, and also a rules set designed for taking a trade entry and for setting both the profit target and the stop-loss level (GTC OTO limit orders). To be more specific - we try to catch early developing trends that we can confirm using our rules set and our indicator package.