AlgoTrendTraders Update - September 20, 2021

Disciplined, rules-based investing

Thomas Meyer, Editor

September 20, 2021

Twitter: @AlgoTrendTrade1

Email: algotrendtraders@gmail.com

Update on Current Positions

The markets dropped sharply and our bullish trade in SPY hit its listed stop of $430.28. The trade lasted over 6 months and returned +11.86%. There is no trade in SPY for the balance of the week.

QQQ also dropped, but it did not hit its listed stop of $356.63. The bullish trade remains intact for now.

GLD opened trading today at $164.29. The listed stop on this bearish trade is $168.05.

Late this evening, Bitcoin hit its listed stop of $40,951.38. This closed our bullish trade with a loss of -15.41%. There is no trade in Bitcoin for the balance of the week.

To recap, we sold our long positions in SPY and Bitcoin, we opened a short position in GLD, and the long position in QQQ remains open.

Today’s market action is why we always have an exit strategy. We don’t know if this is the beginning of a new bear market or if this is just a pause before continuing higher. If the market does turn around and move higher, we’ll be able to get back into these trades again. If it continues to move lower, we both protected our profit in SPY and took a small loss of less than a week’s normal volatility in Bitcoin.

I’ll be updating other trades on Twitter this week including crude oil and Ethereum. The Twitter handle is @AlgoTrendTrade1

Have a good week.