SPI Signals 13 Oct

Trade signals on AB chart, (new model).  If I hadn't changed the model and exited manually I would still be in long position a few days ago with a large intrade drawdown, not good.  Seems to me I definately needed to adjust the exit conditions for this extreme volatility.  Should work on a stop or other exit rule I think, just in case.  As I said earlier the SPI had never traded this large range, but perhaps in my model development I should ask a few more 'what-if' questions and develop scenarios, some to think about anyway.

 

A new trade Friday, exited today

 

SPI Entered Friday 10-Oct 4080

SPI Exited Monday 13-Oct 4144, total + 64 points

 

I didn't trade this one on Friday after seeing the volatility so I sat out unfortunately. I entered a manual CFD trade this morning to at least catch part of the trade playing the break off the open:

 

IG Dec SPI CFD Entered 4137.5, Pyramid Entry 4198.

IG Dec SPI CFD Exited both at 4220.5, total points +105.5

 

It seems a pretty regular pattern really.  A really large sell off causes a discrepency between the SPI & cash index so the open rallies up for a while.  A similar thing occurs on an overnight rally up.  If the model gives a signal to enter is seems to be a pretty good short term trade.

 

Dave