First September Trade

The following information is for educational and entertainment purposes only. Rio Verde Trading and the author make no claim that anyone can or will achieve similar results in their trading.

September 22: Monday’s setup is confirmed today. Bought to open 30 IWM at 113.88.

September 23: Buy signal has me buy 30 more IWM at 113.36.

September 24: Buy signal continues, buy 30 more IWM at 113.11.

September 25: Another buy signal, bought 30 more IWM at 111.14.

September 28: Buy signal has me buying 30 more IWM at 108.18.

September 29: Sell signal; sell to close 150 IWM at 107.61, net loss $-659.00, ROI -18.3%.

This has been a tough year for The 74% Solution trading system. Up until this losing trade I was only showing a profit of $93.25 for the year. I have closed 15 trades for the year, 3 losing trades and 12 winning trades. My win loss ratio for the year, 80% wins and 20% losers, still well above my long term average of 74% winning trades.

Even though I have a loss for the year my win loss ratio is reassuring. I believe the system has not stopped working, at least not yet. I have no way of knowing which trade will be the big winner or which will be the big loser. The discipline is to take every trade. Over time the system will be profitable.

With the sell signal to close the IWM trade I also got a buy signal in QQQ. I am now long 35 QQQ and will be reporting on that trade after it closes out.

If you are paying attention the world economies are in uncharted risky territory. This is not a time to trade aggressively. I sold almost all my stocks, I am short the S&P 500, heavily long gold and silver, I am keeping my trades small and carrying enough cash to cover  inevitable losses. In the past this trading system has performed well in bear markets so am hoping for the best. We shall see what the future holds.