Traders' A.I.

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Results of Published Model Trades for THU 08/01     

Find below the detailed outcome tracking of our models’ trading plans for the day, as well as the results for the last month. 

(please click here to view the Outlook and Trading Plans published in the morning, that these results refer to)

(please click here to view the Summary of the Market Action today)

THE GIST:

Medium-Frequency Models: Lead to +38.36 index points in gains on one long and one short.

Aggressive, Intraday Models: Lead to +37.19 index points in gains on one long and one short.

A NOTE ON NON-CORRELATED RETURNS, and SUBJECTIVE v/s OBJECTIVE TRADING:

With this, both our medium frequency models and aggressive intraday models started the new trading month with a gain of 30+ index points while the index itself lost 26.82 index points, trading that very index. This continues the trend of the last 12 months by our models of yielding returns that are non-correlated to the index while trading the very index itself. 

Today’s volatile headlines surrounding additional tariffs on China caused a U-turn in the market action while it was on a positive roll and near session highs, and the efficacy of using emotionless, quantitative, pre-defined trading plans was demonstrated clearly by both our models and their positive returns generated with just two trades each, encapsulating the two distinct directional biases that demarcated the session. 

We attribute this kind of swift adjustment in trading biases to the quantitative nature of our strategies and strongly believe that subjective, emotional human judgment would have impaired a trader’s ability to adapt – in a timely manner – to such volatile turns in the market sentiment mid-way through the session.

THE DETAILS:

NOTE: The index by itself is NOT tradable. The model plans here based on the  S&P index level can be used to trade any instrument that tracks the index – the futures on the index (ES, ES-mini), the options on the futures (ES options), the SPX options, the ETF SPY are just a few examples of the instruments one can adapt these plans to. 

These plans and results are hypothetical and NOT an investment advice to buy or sell any specific securities but are intended to aid – as informational, educational, and research tools – in arriving at your own investment/trading decisions. Please read the full disclosures at the bottom of this article for additional notes and disclaimers..   

Medium-Frequency Models – Trading Plan Outcomes/Results:

The index broke above the 2985 level within the first five minutes, triggering a long position with an 8-point trailing stop. The long rode to the session high of 3013.59 reached around 11:50am, lifting the trailing stop to 3005.59. This stop was hit around 1:25pm, closing the long with a gain of 20.59 index points.

The index broke below the 2971 level around 1:40pm (following Trump’s tweets about additional tariffs on China), triggering a short position with an 8-point trailing stop. The short rode to the session low of 2945.23 reached around 2:45pm, moving the trailing stop trigger to 2953.23. This stop was hit within the next couple of minutes, closing the short with a gain of 17.77 index points. The models stayed flat for the rest of the session.

Thus, our medium frequency models’ trades lead to a gain of 38.36 index points (+20.59 +17.77) on two trades.  

Note: For the trades to trigger, the breaks should occur during the regular session hours starting at 9:30am ET. By design, these models do NOT open any new positions after 3:45pm. Only one open position at any given time.

Aggressive Intraday Models – Trading Plan Outcomes/Results:

The index broke above the 2985 level within the first five minutes, triggering a long position with a 6-point trailing stop. The long rode to the session high of 3013.59 reached around 11:50am, lifting the trailing stop to 3007.59. This stop was hit around 12:15pm, closing the long with a gain of 22.59 index points.

The index broke below the 2978 level around 1:35pm (following Trump’s tweets about additional tariffs on China), triggering a short position with a 6-point trailing stop. The short rode to an interim low of 2957.40 around 1:55pm, lowering the trailing stop trigger to 2963.40. This stop was hit in the next few minutes, closing the short with a gain of 14.60 index points. 

Thus, the aggressive intraday models’ trades lead to a gain of +37.19 (+22.59 +14.60) index points on two trades.  

Note: For the trades to trigger, the breaks should occur during regular session hours starting at 9:30am ET. Due to the intraday nature of these aggressive models, they indicate closing any open trades at 3:55pm and remaining flat into the session close. No opening of new positions after 3:45pm. Only one open position at any given time.

IMPORTANT RISK DISCLOSURES AND NOTICES – READ CAREFULLY: