Before and After Pictures
Welcome to Issue 048 of Masters in Trading Digest.
In the previous issue, we sent you a warning of heightened market uncertainty.
Did you take action?
Market shocks and volatility spikes can develop quickly, so an important component of trading is a reliable protection system.
I’m talking about the ability to slap on a market hedge at a moment's notice.
Below, you’ll see the hedge our Discord members took.
And, as always – new trades are released Sunday evening for our members.
Enjoy,
Jonathan
FOLLOW THE MATH
In MIT Digest Issue 47, we sent a warning using 3 charts…
BEFORE
On April 1, 2022, Masters in Trading’s High-Value Target (HVT) tool issued a sell signal on S&P 500 Futures.
AFTER
April 6th the triggered sell signal proves correct.
These are the rules of HVT:
- Sell signal ==> If instrument closes above upper 4sigma, then wait for price to come back in between the 4 and 3 sigma bands.
- If close BELOW the 3 sigma band, sell! Stop out if the price goes back into the 3-4 upper sigma bands.
- Buy signal ==> closes below the lower 4 sigma band, then wait for price to come back in between the 4-3 bands.
- If close ABOVE the 3 sigma lower band, buy! Stop out if the price goes back into the 3-4 lower bands.
Masters in Trading Digest - Issue 48
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HEARD IN OUR DISCORD
In Sunday’s Wall Street Wiretapper trade ideas, we suggested traders consider buying very short-term puts in the QQQ to hedge trading portfolios for this week.
Here’s the trade idea we shared:
- $QQQ (5 days to expiry) – Consider Buying 355 Strike Puts for $1.15 or so ($115 Risk)
- 2 Days Later – 355 Strike Puts Trading $5.38 ($538 Value).
And, that’s why you hedge your accounts.
Who Loves This Bond Volatility?
All Traders Should Paper Trade
Have you read Stacy Brovitz's excellent post, Why an Experienced Trader Still Paper Trades?
FINAL THOUGHTS
WHAT TO EXPECT IN THE NEXT MIT DIGEST
Did you get a chance to watch our MIT Web 3.0 Presentation – Searching For Magic Internet Money?
Keep your feedback coming into support@mastersintrading.com. We’re excited to share your feedback along with fantastic suggestions for upcoming issues.
Until then, trade smart and always manage your tail-risk.
Thanks for reading,
Jonathan Rose
Get Masters in Trading Digest FREE!
Want FREE actionable trading tips and strategies like the ones you see here 3 times per week?
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