AlgoTrendTraders Weekly Report
Thomas Meyer, Editor | October 20, 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
Major indices and gold surge to new all-time highs following last Friday’s sharp selloff. SPY closes at $664.39, QQQ at $603.93, and Gold rockets to $4,267.90 - all recovering strongly from last week’s weakness. Crude oil continues downward trend to $57.25, adding to short position profits. Bitcoin remains neutral with no trade following last week’s stop-out.
Current Market Status
Active Trades & Exits
Key Developments
📈 Strong Recovery Rally: All major positions bounce back sharply from Friday’s selloff. SPY regains ground above $664, QQQ back above $603, demonstrating resilience of bullish trends.
🥇 Gold Explosion: Spectacular surge to $4,267.90 - another new all-time high. Now showing remarkable 60.88% profit since January entry with 2.2 Expected Move cushion from stop. Distance from stop widens, providing excellent protection.
🛢️ Crude Continues Lower: Oil drops to $57.25, extending the bearish move. Short position now showing solid 6.36% profit with widening 1.6 EM distance from stop at $62.20. System discipline vindication continues.
₿ Bitcoin Watching: Price at $108,401.47 but remains in transition zone. No current trade after last week’s stop-out. Monitoring for next signal.
🔒 Profit Cushions Expand: Stops move higher on all bullish trades, locking in gains. SPY and QQQ both holding comfortable double-digit profits with improving stop distances.
S&P 500 Sectors At-a-Glance
🟢 Bullish (6): Communications (XLC), Industrials (XLI), Technology (XLK), Utilities (XLU), Healthcare (XLV), Discretionary (XLY)
🟡 Neutral (5): Materials (XLB), Energy (XLE), Financials (XLF), Staples (XLP), Real Estate (XLRE)
🔴 Bearish (0): None
Significant improvement: XLP moves from bearish to neutral; XLV returns to bullish; XLE and XLF drop to neutral
Portfolio Services
Thomas Meyer Investment Management
Not comfortable managing trades yourself? I can handle it for you. Funds stay in your name at Charles Schwab institutional.
Learn more: tminvestmentmanagement.com
Charts
System Performance Through October 19, 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.