Smart Money Trading System

Smart Money Trading System

Wanted to do a writeup on the new SM room  trading system.. Ghat did a post in the beginners circle about it.. got some questions..wanted to put some more detail together on it and also whats new from the SM room.. 

First, here is a table showing the returns backtested on the system since 2018.. (thanks Ghat for putting this together).. You can see the full post here - LINK

As I wrote a couple of weeks back, the big price moves limit ups and downs messed up the initial version of the system... so I had to put up new rules which is essentially a combination of 3 of my best indicators.. so as to get a system with clear cut rules on entries and exits. The aim of the system is NOT to catch every squiggle.. nor is it meant to catch tops or bottoms. It is meant to catch the meat of the trending move. Here is a table that shows the system stats. 

How you read this is system short from March 5th to Mar 13th for 480 points. Then short from 16th - 19th March for 19 points. Then long from 25th of March to 1st of May for 416 points. This last trade we caught in the SM room because it was right after the new rules were implemented.... for 11.2% gains in QQQ, 2.8% in SPY & around 400 points in ES.

And this ES chart shows all of the system ins and outs on a 4-hourly timeframe.. in chart form

 

 

 

The system is currently flat because internals are not supporting this upmove. Flat and patiently waiting for the next trade to set up either long or short...

Every evening and morning, I put out the trade parameters and what exactly we need to see for a buy OR sell to trigger. This way, members know exactly what to expect.. and the rules are clearly outlined in the picture below which I post in the room....

 

 

And when it triggers, I send out an alert with entry and stop. Like below one on Mar 30th... which we eventually exited with 11+% gains..

 

 

If you want a trading method/system which uses internals and price action to tell you exactly when to buy and sell...

Which does not try to catch tops or bottoms but instead tries to stay as long as possible with the trending move...

AND also do this with very minimal drawdown..

Then come check it out at the SM room...

Princely Mathew hosts The Smart Money premium service at ElliottWaveTrader.