Welcome to this week’s Enlightened Trader Newsletter. I didn’t write an update last week because I was away for the long weekend with two other awesome families (we had a great time thanks for asking 😉)
But I am back this week, and at face value, it looks like the US market has finally chosen a direction (green circle on the image below); the S&P500 has entered a clear uptrend, although the other markets I track regularly in this newsletter are still lagging.
A couple of weeks ago, the Hong Kong market looked like it was starting to fall into the abyss (my Hong Kong Slippery Dip short system was up 14% in May), but the market has since bounced back, and so my short system gave back about 6% of those gains in June before retreating to cash (still a nice gain on the short side overall).
While the Australian Index is not looking particularly exciting, there are certainly signs of life beneath the surface. I have noticed in my ASX trend-following system that quite a few small caps are starting to come to life and make some decent moves… It is nice to see these gains after such a long period of malaise.
Drilling down into the US market, the story is still the same as it was a couple of weeks ago. Most of the movement is in the Nasdaq, and it is largely driven by large caps rather than the broader market… at least one segment of the market is clear on which way it wants to go – Go Nasdaq!
The Crypto market took a bit of a tumble in the last few weeks with the SEC attacking Binance again. Thanks to the miraculous powers of long / short diversification, the last couple of weeks have actually been fairly profitable for me in Crypto as my longs mostly closed out, and our short system banked some good gains with all of the fear about what the SEC is going to do.
Personally, I don’t think all that much will change, a bit more regulation is probably not the worst thing in the world, and while the uncertainty is a bit annoying, we can certainly profit from the short side in the dips while we wait for the next decent upswing 😉
This short system is available to everyone in The Crypto Success System
Trading Tip of the Week
Don’t be closed.
This is my trading tip this week.
Here is what I mean… I have always been sceptical of seasonality-based systems. I couldn’t help thinking that many of them are just artifacts in the data that won’t really hold up in the future, let alone actually be profitable trading systems!
My scepticism closed me off to this particular trading style almost entirely so I focused on more common trading strategies like trend following, mean reversion and rotational trading… this was a mistake.
This week one of our superstar Trader Success System Members, Achim from Germany, presented a system in our System Builder’s Club and it was a literal slap on the face of my scepticism.
This was a seasonality-based system which is just fantastic. I loved it, and I am now fully on board!
So be open…
Be open to new and different trading ideas.
Be open to new and different trading tools.
Be open to new and different ways of using your old tools.
Member of the Week
My members of the week this week are Ross and Scott… together these awesome traders taught me some pretty spectacular things in Excel that I didn’t know (and I am pretty good in Excel, but this was next-level stuff!)
As a result of this learning, I was able to produce a fantastic new Capital Allocation spreadsheet that combines the equity curves of 30 or more trading systems in different weightings. This allows users to test different capital allocations and design the right mix of systems to meet their objectives.
Thank you Ross & Scott. I am humbled by your Excel Mastery!
… and members of the Trader Success System thank you as well because this new tool is AWESOME!!!
News from EST
There has been a lot going on here at Enlightened Stock Trading! I have 5 news items for you this week…
Item 1. The Smart Stock Automation Engine is now live!
I have opened the cart for a short time to allow access to a launch group of members who want to automate their portfolio fully.
This opportunity (and a 20% saving) is only available until Monday 19th June, so get in quick if you want to learn how to automate your trading and free yourself from the daily grind of signal generation and order management.
Item 2. We published our first book!
Last week we published our first book on the Amazon Kindle store called ‘Wisdom from the Masters of Systematic Trading’. Here is what a couple of readers have said:
“Like the title suggests, this book is full of wisdom and is an insightful read. The content and quotes within the book remain relevant regardless of experience which makes it a book that can be read over and over again. The quotes contained within the book serve as both reminders and inspiration for successful systematic trading.” ~ Stephanie
“This is a must-read book if you are aspiring to be a successful trader or you are trading and you know you need to improve but are not sure how. For a seasoned trader it’s also a powerful checklist of first principles to measure your own growth and trading against. Whether it’s Stocks, Crypto or something else, Adrian has outlined the six fundamental foundations for profitable, consistently successful systematic trading.” ~ Patrick
Wisdom from the Masters is not a technical system trading book but rather a book that makes sure you are on the right path, gets you clear philosophically on how to become a successful trader and a book to inspire you with the core lessons you really need to learn (that most traders ignore) while struggling to become consistent and profitable.
It costs less than my Latte did this morning and is infinitely more valuable. I trust you will enjoy it, and I look forward to hearing what you think soon!
Note: If you don’t have a Kindle, don’t worry, you can just download the Kindle app on your phone and read it there 🤩
Item 3. New capital allocation spreadsheet for Trader Success System members (in beta testing)
This week I also released my new capital allocation spreadsheet to a group of beta testers in the Trader Success System… this is conservatively a 10x improvement on my last tool for capital allocation, and I am thrilled with it!
Members of The Trader Success System can now quickly and easily combine 30 or more trading systems into a portfolio and determine the weightings for each system that best meet their objectives. I am so happy with it that I am planning to completely revamp my own capital allocation using this new tool!
Item 4. A new course called Portfolio Construction Mastery
Exclusively for Trader Success System members, we have released a new course called Portfolio Construction Mastery which is a perfect complement to our new Capital Allocation Spreadsheet.
This course takes you step by step through the process of creating your ideal portfolio of trading systems and is a must for all traders looking to diversify into multiple systems and markets.
The course will be available in the Members area early next week!
Item 5. Webinars on Interactive Brokers Campus
This week I presented two new webinars on IBKR Campus. I now have my own page where you can access the recordings and download the presentations. This week I spoke about:
1. Bear Market Survival, Risk Management & Trading Strategies
2. Building Go-Live Confidence in Your Trading
On the Home Front
I have been sick for the past week, so feeling pretty ordinary, to be honest… on the mend now, after a couple of days, zoned out in bed and not doing much. Being sick has not been great for my last minute preparations for the Kilimanjaro climb at the end of June.
There are only 2 weeks to go, and I don’t really have the energy to walk around the block… but I am sure in a couple of days, I will be back to 100%, and I am certainly looking forward to standing at the peak of Africa with my son!
Are you ready?
We are approaching the end of the financial year in Australia, so now is the perfect time to join The Trader Success System Membership… Join now, potentially get a tax deduction (speak to your accountant about that), and receive the best systematic trading course, live support and portfolio of systems for the next 12 months.
If you want an EOFY deal on The Trader Success System, comment below with ‘Deal’, and I’ll get you the super secret details… I am not sharing this on the website or anywhere else, only with you because you read to the end of my newsletter, and I really appreciate that!
Hope to hear from you soon. Remember, the secret word is “Deal”.
Founder & Master Coach, Enlightened Stock Trading