Sunday, March 9, 2014

IPM Trade Matrix Update - Trade 6 (Part 9)

Trade Overview
Would like to start by thanking God for another amazing trade. IPM Trade Matrix has been extremely profitable since its inception.

Trade 6 was exited because aggressive stops were hit on Friday (3/9/14). Stops were hit based on Global Dow. Although there is a potential for higher highs over the next week, IPM Trade Matrix's rule # 5 tells us that if stops are hit and the next IPM turn window is within 1-2 weeks, no trade will be entered.

We will continue to evaluate the market for better understanding of when to enter the next trade.

Regular updates are posted on twitter. They are visible in the right pan:

IPM Trade Matrix 2014 Trades

TRADE - 1: (Long) = +2.6%
TRADE - 2: (Short) = +9.3%
TRADE - 3: (Long) - Non IPM Trade Matrix trade -0.2%
TRADE - 4: (Short - 1/31/14 to 2/5/14) +7.25% 
TRADE - 5: (Long) = +9.8%

TRADE - 6: Long
Long TNA at 69.94 ==> 72.75 (added longs) ==> 74.85 (added longs) ==> Exited all at 83.6 ==> +11.7%
Original trade 6 longs were initiated on 2/7/14 based on IPM Trade Matrix Trigger. More longs were added on 2/24/14 and 2/26/14. Exited all on 3/8/14.

When: Outside IPM Turn window. 
Trigger: EW pattern completion. Current pattern suggests that the correction is over or will soon be over. Rally above SP500 = 1851, Global Dow = 2472. Secondary long trigger was triggered on Monday with Ukraine's sell-off.
Supporting Indicators: Up trend, Next IPM turn window is a Top, Next IPM Turn Window is 1-2 weeks away, Rise has been impulsive in nature

Profit Target 1 (SP500): 1908
Profit Target 2 (SP500): No target # 2 on 2nd trade
*TNA profit objectives have been hit. Aggressive trailing stop scenario has been activated to preserve profits.

Stop: Break below SP500 = 1810, DJIA = 16000, GDOW =  2440
Trailing Stops: With TNA profit objectives being met, aggressive trailing stop scenario is now active. Close below SP500 = 1872 , DJIA = 16370, GDOW = 2498  stop was hit
Typical IPM Trade Matrix Risk: 1.5%
Actual IPM Trade Matrix Risk: 0% (Entry = 1850, Exit = 1867, Risk = 0% )
Risk Reason: No significant reason for concern. Market needs to hold critical levels and we will see higher levels  

Applicable Rule (There are 7 Rules in the IPM Trade Matrix): 
  1. Do not go long or short without trigger to prevent losses by market moving against you.  
  2. Exit all at profit objective 1 because its the 2nd trade with IPM Turn window. 
  3. No Trade in opposite direction
  4. Observe stop-losses to minimize draw-downs
  5. If stops are hit ==> Wait on the sidelines for new opportunity near IPM Turn window

Note: IPM Trade Matrix Trades will be posted in the first half of 2014. This is an experiment to understand and enhance the capabilities of this Matrix.

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