Hey Guys,
The market is still down in the trenches. It's up a bit from where it started the day yesterday, but the S&P 500 is still down in the 3700s.
Today the Fed is expected to make an announcement about interest rates around 11am Pacific Standard Time. There could be a lot of market volatility in response to their announcement.
It's always hard to predict which way the market will go with a pre-planned announcement like this because you can't tell whether the market has already "built in" the expected information from the event or not. And beyond that, day traders come flocking to event-based trading situations like this because they provide enough volatility to create solid profit potential. As a result, that further amplifies the price volatility, even if ultimately the price ends up back where it started from before the event.
How do I navigate situations like this? If you have been with this service long enough, then you can probably predict my answer: I stick to the plan.
When I ran these back tests, my algorithm was set up to simulate trades through all sorts of different market environments and events. I didn't program the algorithm to try to make any sort of judgments or use any sort of emotions when making trades. Instead, I programmed it to repeatedly take the trade setups each time the conditions of the trading strategy were met. And since my objective is to mimic the back test, I do the same thing.
There have been no new trades yet today. I closed GO this morning since it reached its time limit, and it was one of the rare stocks that generated a profit over the last few days. Just about everything else has been red.
If you have any questions or feedback, I'd love to hear from you.