Just a quick note to let you know that there will be no Day Trading Signals today.
We've been reviewing the performance of the recent Signals day by day, Signal by Signal and we noticed the decreased quality of their accuracy.
The entire Day Trading Signals trading system (the set of techniques used) have been prepared based on the regular market circumstances: some sideways trading, some moderate trends, and a few stronger moves. The techniques were tested over and over again, with each test they improved and we finally decided to provide this trading system as our premium service.
However, the investment landscape has changed dramatically in the last few weeks and as the data from the most recent trading days shows, our trading system is not immune to such a major change.
It's called the "data regime change" - implications and techniques based on one data regime can't - or at least shouldn't - be applied to the other data regime, similarly like you can't really make weather predictions in the winter based on the temperature statistics that you gather only during the summer.
We don't want to give you a product that is "somewhat" profitable. We take big pride in providing you with only the best (on average) Day Trading Signals that allowed us to provide as great results as you can see on our performance page. Consequently, we will not provide Day Trading Signals that are based on our previous trading system as long as the current extreme volatility in many markets persists. This might take weeks, or even months.
However, this doesn't mean that we're completely giving up. Quite the opposite. For a few weeks now, we had been planning to design a strategy aimed at detecting bigger price moves that we would be able to apply to the intraday environment. Being free from using our previous trading system (for the time being), we will fully concentrate on setting up the new system and the odds are that we will design / fine-tune it much earlier than it would be the case otherwise. "Fine tuning", because we had "somewhat" designed this strategy previously, but we haven't finished doing that. Based on the preliminary research, it could be even better than what we've been providing you with so far.
You probably noticed that our profit-take levels are usually as far from the entry price as the stop-loss levels. In the new system the profit-take levels should be considerably further than the stop-loss levels, making the risk to reward ratio for each trade much better.
Once we complete the above, we'll have not one, but two day-trading systems - one for situations when the volatility is relatively low (like it used to be the case), and one for high-volatility environments (like what we have right now), so in the end you should benefit from this.
Hopefully, our Day Trading Signals (in the new system) will be back next week, but we don't want to make a hard deadline for that as we won't start with the new system until we're satisfied with the results.
Nadia Simmons and Przemyslaw Radomski, CFA