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.
December 11: Yesterdays setup in IEV is confirmed today. Bought to open 80 IEV at 39.81.
December 14: Buy signal continues. Bought 80 IEV at 39.76.
December 15: Sell signal. Sold to close 160 IEV at 40.07.
Net Profit $39.60, ROI 1.197%
It is now December 17, Janet Yellen at the Fed has raised interest rates 0.25% and the world has not come to an end, yet? As you can see from the various articles that I link to on my ‘Home’ page, I try to keep abreast of world and national financial news. The news could make anyone nervous about the economy, me included. However my trading system is not based on any fundamental information, just the closing price of the ETFs that I use. When I got the trade signal for IEV I will admit I was nervous about taking the trade because of the upcoming Fed meeting. The discipline of the system is to take every trade that comes along, though uncomfortable, I took the trade and it worked.
I do not have immediate access to all my actual trades since using this system; but I believe this is the first IEV trade I have made. The reason I have not made an IEV trade until now is that, in the past, whenever IEV signaled a trade, several other ETFs were signaling a trade at the same time. Anytime I get multiple trade signals I always trade the ETF with the best track record which is usually SPY or QQQ.
As evident from the ‘Trading Record’ page, the system is under performing in 2015. The IEV trade was a pleasant surprise reinforcing my faith in the system. The win loss performance is still above the historical record of 74% winning trades, which also reinforces faith in the system. This is why back testing and keeping accurate records is important, it helps you maintain faith in the system, even when it under performs. No trading system is perfect. Even the greatest investor alive, Warren Buffet, has bad years.