Our Best Month In The Past 2 Years

July was a good month.

We saw a breakout to new highs in the S&P500 out of a two year consolidation and we also had our best month of performance since our swing service started back in January 2015.

This makes sense, we are momentum traders primarily trading breakouts, so this is the type of environment we should excel in.

Still, markets never make it easy.

Remember, the run up and breakout to new highs was a v shape rally immediately following, the Brexit aftermath and two day -5% drop in the $SPY.

In hindsight charts always look very obvious, but I can assure you sentiment at that time wasn’t thinking the long side was the easy money trade.

Failing to get back on board the long side, or doubting the post Brexit rally for just a tad too long, and it would have been easy to fall into the camp of missing the rally, and not wanting to chase an overbought market.

Markets are cruel.

Mr._burns_excellent

I’m a big fan of R Multiples for measuring performance and for the month of July we locked in a total of +6.51 in gains.

To determine what that means to our bottom line, simply multiply that number by the amount risked per trade. The only asterisk is that this calculation assumes you risk the same $ or % amount in every one of your trades.

For example, risking 0.5% per trade * 6.51 = +3.26% July return.

1% risk per trade would have been a +6.51% return.

This doesn’t include the open positions we carried with us into August, which boosts our true R Multiple gain to 8+ for July.

For a complete list of our closed out trades in July, have a look here:

Screen Shot 2016-07-29 at 3.39.40 PM

If you didn’t get the results you were expecting this month, then look back over your trading decisions and ask yourself the tough questions to figure out why.

Start next month with a clean slate.

For our thoughts on markets heading into next week, watch our weekend recap video here.

If you’re interested in learning more about how we trade or if you want to participate in our trades going forward, check out this page here.

 

Enjoy what you read? Share it below and be sure to tag @thetraderisk.

Find similar content on the following:
Posted in ,
Tagged with

Evan Medeiros

Evan is the founder of the Trade Risk. With 20+ years of coding experience and a B.S. in computer science, Evan brings a systematic discipline to investing in the stock market.

Don't miss out on more educational articles just like this!

Please enter your name.
Please enter a valid email address.
Something went wrong. Please check your entries and try again.

1 Comment

  1. […] Evan Medeiros has been on StockTwits for several years now. His speciality is swing trading and you can find him each day sharing interesting set-ups, charts, and blog posts about what he sees in the market. We recently connected with Medeiros because we wanted to ask him more about his strategy and style (he just had his best trading month in 2 years!). […]

Leave a Comment