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Friday, January 10, 2014

IPM Trade Matrix - New Trade

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

First Trade of 2014 is in process:

Long TNA at 76.25
Long FAS at 92.30

Condition: Next IPM Window should be Top or Bottom
Trigger (Updated at End of Day): Rally above 1837 (SP500) and above 16450 (DJIA)
Profit Target: 1890
Stop: New low outside of IPM bottom window. EW & Trailing stops will be determined after trade is entered & IPM Model Turn window passes

Typical IPM Trade Matrix Trade Risk: 1.5%
Risk Reason: Wave 3 down might start.  Risk will be mitigated by the stops


Applicable Rule: If next IPM turn window is within 2 weeks then wait for a confirmation break before exiting longs.

Please note that this system is being developed on an experimentation basis, and will evolve over time. It will be interesting how market behaves on tomorrows unemployment report and earnings releases.

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