Is Your Trading System Consistent?
From the mid 1990s up until the year 2000
we were
in the midst of a great Bull Market. Virtually anything you touched became a
winner. Blue chip, hi-tech…picking a stock was as easy as throwing a dart at a
newspaper because everything eventually went up. Housewives and cab drivers were
changing their lifestyles and quitting their jobs in order to become full-time
day traders.
Of course, we all know what happened after that.
What had worked so well for making money in the past suddenly didn’t work at
all. Stocks and indices were no longer behaving the same way they had used to
and subsequently, all previous trading strategies that were once profitable went
out the window.
The key to being successful in the markets is to
trade a method that is consistent in both Bull and Bear markets. As we’ve
learned, most any system can make a profit during a great Bull market, but a
strategy that’s earned its keep is one that can go on generating positive
results even during the worst of times.
I’d like to show you the results of a method I teach
at the
Swing Trader’s College that exemplifies this point. Applied to the SPX,
notice how profits were produced continuously every year going back to 1995. But
pay particular attention to the system’s performance during the bad years of
2000 – 2002. The strategy continued to generate positive results even though the
under currents of the market had changed. This is the edge we provide at the
College: empowering students with
systems that can generate positive results in the good times as well as the
bad. Â
                                                    SPX
1/1/95 — 1/1/05
                                                        (yearly results)
Steve Primo
P.S. Join me for an intense 14-week swing trading program in which I’ll cover
six statistically-backed systems.
Click here for the details.
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