A comment about Spring ES

Posted March 10th, 2019 by Trendfinder and filed in Articles / Announcements

Spring ES and the other daytrading systems haven’t had a trade since January. I’ve had a few ask about this, so I am posting this for everyone.

Spring ES and the other daytrade systems avoid periods where volatility is low. These periods (like now) are poor conditions for day trading. The potential for profit is low because the market moves are small and choppy, and therefore the reward/risk ratio is very poor. Trading during low volatility periods is only beneficial for the broker (and not really even then, because people will stop trading the system because of the losses). October-December 2018 had very high volatility, so Spring ES had trades almost every day. When volatility picks up again, Spring ES will be more active again. When the odds are not in your favor, it’s better to not trade at all than trade just to trade. One edge we have as traders is that we get to pick when to trade. A good analogy is that it’s better to only swing at strikes than try to hit every pitch (only swing at the fat ones).

Patience is definitely a virtue in trading. We can’t control the markets but we can control when we trade.

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