Thursday, August 30, 2018

Just Follow the Model

Yesterday, based on looking at the candlestick patterns and Oscar Carboni's caution about a possible "holiday reversal", I decided to close my long position. I missed a big rally today as a result. At least I didn't lose money. But I shouldn't doubt the model. Now the model is signalling short. However, due to low volatility, I won't take this short signal. There was a similar signal on 9 January that made small gains for a couple of days and then lost big. Another similar signal on 11 May also lost money. So, seems a good point now to just step out of the way, especially as on Tuesday I am traveling to Europe.

The model gained 3.19% on this long trade.

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