Once upon a time I used to be an active stock and options trader. But then I discovered crypto currencies and never looked back… NOT!!! Actually trading stock options still is my bread & butter up to this day and I just so happen to be good at it.
The entire crypto market took it on the chin last week, along with equities. Let’s assess where we are and what the odds are for either continuation lower or a bounce back towards the upside.
Video Link: https://youtu.be/-CknFhGruqk
Now while the market’s gyrations have been driving everyone bonkers all summer I’ve remained holed up in my trading lair working on refining several edges I had been pursuing for a while now.
One of them is Veritas, which I have christened my vastly improved crypto market season signal. In a nutshell this one issues an alert each day telling you what trading season we’re currently in: CASH, BITCOIN, ETHEREUM, or ALTCOIN (yum yum).
The graph above shows you one configuration out of literally thousands I have tested. What really blew me away was the resilience of the edge, as I could not find a single configuration that was not profitable.
The graph above shows my trusted Kalman filter that drives one of several data series used in the signal. As can see it’s keeping up well with the swings despite a tight fit. The past few months clearly demonstrate the type of whipsaw the average moving average would be unable to handle.
There were a few other contenders but I chose the one that offers a good compromise between downside volatility (think drawdowns) and pure profits. I am pretty sure the subs are happy as it’s already ticking along live for a handful of guys who participated in the early beta.
I’ll throw up an order form over the next week or two – there will be an annual and lifetime membership. The price will be more than reasonable as I want this to get into the hands of as many folks as possible.
I think this is a great tool for all of you long term traders and even most HODLers. After all half the battle trading any market is won by knowing when to hold and what, as well as when to head for the hills if things are starting to take a turn for the downside.
Have a great week.
Michael
Legendary trend traders like Ed Seykota, Bill Eckhardt, Richard Dennis, Bill Dunn, and Paul Tudor Jones have built fortunes by mastering a simple yet powerful trend-following strategy.