In the last week big tech is back on in the US and is absolutely leading the charge. In fact, seeing the NYSE and the Russell 2000 down in the last week while the Nasdaq is up 4.3% shows you just how much divergence there is between tech and the other sectors. In the table below you can also see that the XLK tech sector ETF is up 6.9% which is a huge week compared to the other sectors in the US!

Us stocks

SIDE NOTE: If you want to pull Norgate and other data sources into Excel, make dashboards and automatically update your performance reports and trade logs then get XLQ2 – It is what I use for this table and many other analyses in Excel.

In fact looking at the global markets performance table for the past week there are really only a couple of bright spots – the Nasdaq and the Taiwan stock exchange. Pretty much everything else of interest (including Crypto) is essentially flat or in the red.

I am currently in a drawdown in Crypto, but nothing to worry about from my perspective. I trade a wide universe of crypto tokens and the alts have not been doing well recently so it is not surprising that my long systems are in drawdown. That will change quickly when the market breaks out to the upside next

Global market performance

Carrying on the Taiwan theme, I mentioned the Taiwan trend trading system I developed live in front of my students in The Trader Success System in my last update… this is having a great 2024 so far – up 24% YTD. All of my Trader Success System Mentoring students now have this system (along with many others) in their System Builder’s Club archives

Portfolio equity

I really like the diversification from different markets like this so I wanted to reemphasise it here because I believe that many traders have way too much of a “Home Bias” (hat tip to Greg K who I was speaking to today who gave me this term) and as a result don’t diversify internationally.

I am looking forward to the next iteration of my capital allocation so I can add this new market to my portfolio!

Our Dolphin signal service system (Equity curve below) also continues to hold up well given it is a highly selective mean reversion system on a US ETF. One interesting observation of this system is it is for patient traders – it doesn’t signal very often, but when it does they tend to be good trading opportunities. If you want a low maintenance systematic approach to trading without doing the work yourself, Dolphin is a great approach.

Dolphin Backtested Performance Statistics

  • Compound Annual Return: 18%
  • Average Exposure: 14.8%
  • Risk Adjusted Return: 124%
  • Max Historical Drawdown: 23%

I am liking mean reversion on ETFs much more than I do on stocks (I have both), but the Dolphin system is one of my favourites. (Click here to find out the details and subscribe to Dolphin)

Compound open equity

Trading Tip: Handling FOMO

Handling FOMO, or the fear of missing out, is a common challenge for traders, but systematic trading offers a robust solution. Here’s how it helps:

  • Objective Criteria: Systematic trading relies on predefined rules for entering and exiting trades. This objectivity helps you stick to your strategy rather than chasing the market based on emotions or hype.
  • Consistent Execution: By automating your trading decisions, you remove the emotional impulse to jump into or out of trades based on what others are doing. This consistency helps mitigate the feeling of missing out because each decision is calculated and deliberate.
  • Backtesting: Systematic strategies are tested on historical data, which provides confidence in the strategy’s effectiveness over time. Knowing that your system has performed well historically can reduce the anxiety of missing out on any single trade.
  • Diversification: Systematic trading often involves multiple strategies or assets, spreading risk and reducing the impact of missing out on any single opportunity.

By focusing on these aspects, systematic trading not only helps manage FOMO but also enhances your ability to maintain a disciplined approach to trading. What strategies have you found effective in managing FOMO when it comes to your trading decisions?

Member Wins

Our Member of the Week is Joe P 🤩

Joe has only just started his Trading Journey with EST and is positively rocketing through the Launch phase (pun intended); he has been achieving great momentum by utilizing the Forum and attending Live sessions.

We are here cheering you on every step Joe, keep up the great work!

On the Home Front

Last weekend, we were fortunate to spend some time on the Gold Coast to celebrate a friend’s 40th. We enjoyed the party, walked on the beach, ate a couple of amazing meals and decided the Gold Coast definitely gets an ‘Upvote’!

Home front

We are so fortunate trading allows us to live a life of flexibility and freedom. We had lots of reminders last weekend of how lucky we are to be able to experience life on our own terms.  Looking forward to being in Sydney to connect with our business Mastermind group at the end of the month, then back up North in July for Stephanie’s Porsche Experience

What are you aiming for trading to enable in your life?

Enjoy the markets this week… remember, if you are nervous about your portfolio then you don’t have the right mix of systems OR you are trading too aggressively.

Have a great week.

Remember – You’re only one trading system away!

Adrian Reid

Founder – Enlightened Stock Trading

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