I have updated my list of seven trading rules. The new entry is called Trend, and it reads:
Trend – the trend of the market is defined by the
13-week EWA and 52-week EWA of the $SPX. Based on the relative position
of the 13-week EWA, the market is either Up-Trending (13-week EWA above
the 52-week) or Down-Trending, and no more than 20% of the value of all
your positions may be positioned against that trend at any one time.
13-week EWA and 52-week EWA of the $SPX. Based on the relative position
of the 13-week EWA, the market is either Up-Trending (13-week EWA above
the 52-week) or Down-Trending, and no more than 20% of the value of all
your positions may be positioned against that trend at any one time.
I put a lot of thought into this, after carefully reading hundreds of comments of feedback over the weekend. Thank you to those who wrote!
