atlus1432's  Instablog

It's been a few days since my last post. I had taken a bit of time off and I have also been working on a new Excel trading platform which models out a brilliant trading strategy developed by my friend and colleague John Manley of Market Evolution Trading http://marketevolution.wordpress.com/   John is one of the best options trading strategists that I know personally and often times, as I have mentioned in previous blogs, I devote a good percentage of my time and portfolio to residual income plays. One of my personal favourites he called the MES or Market Evolution Strategy is designed to unfold exactly as the title suggests TO EVOLVE WITH THE MARKET - not to try and predict. Yes you can have an opinion (it is especially useful when building an options strategy around that opinion) but you also have to accept the fact that a good percentage of the time adjustments will be necessary given how fluid the markets are hence the word evolution within the market evolution strategy. At any rate I suspect it will be another few weeks before I have the platform at a point where I can begin introducing it to the world. It's an incredible step by step approach that I cannot take credit for. The program or platform within Excel is my work but the strategy itself is Johns. Personally I have my own "nickname" for it - I call it the "TACK" strategy, named after the nautical manoeuvre when sailing which has you constantly shifting your sailboat back and forth to catch the wind in your sails. This strategy has similar characteristics - when the market zigs, you zag.

Look for a blog tutorial in the coming weeks on this strategy and the platform to support it. Perhaps I can get John to walk us through and actual play.

In the meantime let's pick up where we left off - part 3 of the series on Dynamic vs. Position Sizing. In my last web tutorial I stressed that just because we have the capital to trade "X" number of contracts (SP500 Emini in this example) does NOT mean we can afford to. When modelling out a stop loss in advance of initiating on the trade, we can see that if the trade were to be a losing one the percentage risk to the overall account balance is too great. We, of course have the option to tighten our stop loss but we now know that that just causes a "whipsaw" effect, throwing us in and out of erratic trades, costing us unnecessary losses and commissions. The solution is to reduce the number of contracts we trade even though we know we have the capital to trade more. Managing your risk is more important than modeling your profits. With the m3 - Money Management Modeler you remove all guess work. Risk management, position sizing and probability are the capabilities of this platform and if you click on the link below I will pick up where I left off on how you can still grow your trading account exponentially though the magic of position sizing all under one's personally defined risk parameters.

Click the link below and enjoy the web tutorial

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** dont forget that all web tutorials are available to view in the archives. Once you have clicked the above link look above the play window and scroll through the entire library**

Fulcrum Shift Trading

Fulcrum Shift Trading