Help-Down Strategy Catches 7.7% of the 9.7% Pull Back in the S&P500

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A daily chart of the Help-Down Strategy as it catches the pull back

The Help-Down Strategy is designed to catch market tops and provide shorting opportunities. I’ve been trading it in parallel to the Help-Up Strategy (which catches market bounces and follow up trends) since January 2017. It’s still very much a work in progress and this was the 6th recorded trigger. The bearish divergence (pink lines) on the 29th January on all three Help Indicators flagged a top and the strategy caught 7.7% of the 9.7% pullback in the SPDR® S&P 500® ETF (SPY).

Trigger #5 didn't work out. I suspect the Santa Rally in the lead up to Christmas and the short period of the divergence was the cause of this. The tight stop ensured the loss was just 1%.

Prior to that, #4 gave the expected 3ATR move to the downside from the point of entry, but I didn't take the trade.
© Ian Murphy 2018
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