Wicked Wednesday

It’s all smiles down here at the evil lair as Scalpius is starting to get its groove on and managed to bank over 20R in the past two sessions. I’m still fiddling with the trailing logic but at this point it is outperforming what I’m seeing in historical tape. Reason being is that you can never properly simulate the spread, the offers, the available volume – it has to be done live.  Proper trailing is as much an art as it is science as it needs to consider the momentum of the price action and weigh existing against potential future gains. Yes, you can come up with MFE stats but they can be deceptive because your strategy may not be banking coin consistently – some thrive in trending tape, others due to mean reversion. So you want to optimize it for the type of tape it’s built to exploit. In the case of Scalpius that’s ST trending tape.

Picking a range inside that coveted sweet spot has been my recent endeavor and I have resorted to some rather creative approaches, which are truly pushing the envelope but seem to be paying off. The stats above show you the recent live track record which actually missed a few 4R winners (one today) as I’m still fiddling with my b/a spread filters. Definitely work in progress but it’s getting there and clearly I’m on the right track.

Quick update on natgas – this one looks like it’s good to go. I’ve moved my stop up to the break/even spot now and until this thing picks a direction there’s nothing to do. Natgas has been in this sideways hell for months now, which is rather uncharacteristic. When it finally takes off one of these days there will be hell to pay. They call it the widow maker for a reason.

Alright, we have a ton of setups today, ladies and leeches! Let’s start with the bonds, here’s the five year contract which I’m long with a stop below 110’3. This one could turn into a trending candidate but it’s still a bit early to judge.

Ten year futures – also long here with a stop below 128.

And the thirty year – you get the idea. I have split my R between those three in case you wonder – I’m not that bold and neither should you be.

Quite a bit more below the fold – meet me in the lair:

It's not too late - learn how to consistently trade without worrying about the news, the clickbait, the daily drama and misinformation. If you are interested in becoming a subscriber then don't waste time and sign up here. The Zero indicator service also offers access to all Gold posts, so you actually get double the bang for your buck.

Please login or subscribe here to see the remainder of this post.

By the way the Evil Lair’s genetic science division managed to splice together gene samples of Ragnar Lothbrock plus some essence of Godsmack and Disturbed. Here’s what came out the test tube:

Now I admit – nothing really new here BUT for some reason it’s absolutely brilliant. Can’t stop listening to it. It’s a new band so these guys need some promotion. If you like it send it to everyone you know. And let’s not forget Disturbed is releasing a new album in a few days. Maybe there’s hope for rock & roll in this decade just yet.

Cheers,