AlgoTrendTraders Weekly Report
Thomas Meyer, Editor | October 13, 2025
Email: algotrendtraders@gmail.com | X: @AlgoTrendTrade1
IMPORTANT DISCLAIMER: The information published in this newsletter should not be used to make personal investment decisions. We do not know your personal financial situation. Investments should be made only after consulting with your professional investment advisor and only after reviewing the prospectuses or financial statements of the companies in which you’re considering investing.
Executive Summary
Market volatility strikes as Friday selloff hits hard. Bitcoin stopped out with -3.72% loss after brief rally above $125k. New all-time highs made earlier in week across SPY, QQQ, Gold, and Bitcoin before retreat. Crude oil short trade progressing well after sharp drop validates system discipline. Two sectors retreat to neutral as market breadth narrows.
Current Market Status
Active Trades & Exits
Key Developments
🚀 New Highs Then Friday: Fresh all-time records made in SPY, QQQ, Gold, and Bitcoin earlier in week. Volatility expansion pushed exits to more profitable positions before Friday’s sharp selloff.
₿ Bitcoin Stopped Out: Price surged above $125k early week, then plunged to $104,500 late Friday, hitting stop. Trade closed with -3.72% loss. No current trade.
🛢️ Crude Validates Discipline: Last week’s question “why trade if you think it’ll be bad?” answered by sharp crude oil drop. Short position looking good, though not yet profitable if stopped this week. System discipline proves its worth.
📊 New Chart Design: Behind-the-scenes improvements deliver clearer, easier-to-read charts with more powerful algorithms. More positive changes coming in next few weeks.
📉 Sector Weakness: XLF (Financials) and XLV (Healthcare) both drop to neutral. Market breadth narrows significantly with only 5 bullish sectors remaining.
S&P 500 Sectors At-a-Glance
🟢 Bullish (5): Communications (XLC), Industrials (XLI), Technology (XLK), Utilities (XLU), Discretionary (XLY)
🟡 Neutral (5): Materials (XLB), Energy (XLE), Financials (XLF), Real Estate (XLRE), Healthcare (XLV)
🔴 Bearish (1): Staples (XLP)
Two changes this week: XLF and XLV both drop from bullish to neutral
Portfolio Services
Thomas Meyer Investment Management, LLC
Not comfortable managing trades yourself? I can handle it for you. Funds stay in your name at Charles Schwab institutional.
Learn more: tminvestmentmanagement.com
System Performance Through October 12, 2025
Why Trend-Following Works
The Problem with Buy-and-Hold: When you need your money (retirement, medical, education), a 30-50% loss at the wrong time can derail your plans forever.
The Solution: Disciplined exit strategies. Every trade has a predetermined stop-loss based on the security’s normal volatility. Small losses, big wins.
Key Principles:
Follow trends until they break
Weekly closes eliminate daily noise
Risk management is more important than being right
Boring but historically effective
Trading Methodology
The Yellow Channel System:
Above yellow zone = 🟢 Bullish (go long)
In yellow zone = 🟡 Neutral (no trade)
Below yellow zone = 🔴 Bearish (go short)
Exit Strategy: Based on each security’s 52-week volatility (”Expected Move”). Stops move up with profitable trades but never down.
Best Entry: When new signals trigger. Late entries carry higher risk - consider smaller position sizes.
Remember: Always have your exit strategy prepared before entering any trade.
This is not a “get-rich-quick” scheme. Trend-trading requires discipline, patience, and proper risk management. Past performance does not guarantee future results.