Oluwatosin Israel Tokode @oluisrel: "///This Week From a macro viewpoint,..."

United Kingdom

///This Week From a macro viewpoint, I'm seeing a mix of good and bad news for the economy but you should never read too much into macro analysis. The $SPY (State Street SPDR S&P 500 ETF) barely had an up week, it has been consolidating technically which means a breakout or breakdown is ahead. In periods like these, you'll see whatever you're looking for in the market: an impending breakout to new all time highs or bear market breakdown just like 2007. //Trading System (TOKODE.com) I figured if most of the gains in the system come from two strategies, why not make those two the system? The other strategies simply use up capital and add volatility. So I removed two strategies (momentum and mean reversion) leaving three to make up the current system, simpler is usually better. Volatility is now the main strategy, Momentum helps diversify it by giving access to $TZA (Direxion Daily Small Cap Bear 3X ETF) $SOXS ( Direxion Daily Semiconductor Bear 3X ETF) which help decrease the drawdown while Reversion provides alternatives in bear markets. Although the system's MaxDD is now higher, the CAGR is even higher resulting in a higher return to drawdown ratio than the previous system. Be warned though, this is literally taking the bull by the horns; drawdowns are shocking and swift but the returns make it all worth it. /Momentum I have renamed the breakout strategy to momentum. Breakouts afterall, are a form of momentum. $SDOW (ProShares UltraPro Short Dow30) is the only position in the strategy which is a bit frustrating but it is not surprising as all other indices have underperformed since the correction. I expect an entry from the other indices any time soon as the setup is there, the patterns just need to fall into place. /Volatility Finally got the entry on $UVXY (ProShares Ultra VIX Short-Term Futures ETF) this week. Hopefully, volatility continues to fall to a minimum so the position can make progress quickly. It is already making gains but with this ETF, one day can reverse weeks of progress. Although I trust the risk management of the algo, I might need to step in if there is another major event risk. I hope I never have to do that. /Reversion This strategy is only active in bear markets.