New Feature: Momentum Surge

New Feature: Momentum Surge

February 6, 2019 0 By Jeremy

A couple of days ago I wrote about my Current Trading Strategies. In that post I talked about the three trading strategies I use in my personal trading account, including the Momentum Surge strategy.

The strategies included:

  1. TQQQ Trading Strategy – a mean-reversion strategy that trades TQQQ. The results have been really strong while reducing drawdowns in a very volatile ETF.
  2. Stocks on the Move – a momentum-based strategy that buys the strongest momentum stocks in the S&P 500.
  3. Momentum Surge – a short-term individual stock strategy that buys stocks that are consolidating to take advantage of breakouts. Manages risk by keeping stocks tight and selling into strength.

Momentum Surge Candidates

In the top menu bar on the site, there is a new drop down called “Momentum Surge“.

Each night I will update this page with Momentum Surge ideas that I am tracking for purchase the next day. For each symbol, you will see the chart from TradingView.

Specifically, for each of the stocks that I add to this list I enter a buy stop limit order. This means that I have entered an order for a buy at a specific price above a breakout value, with a bracket order for a tight stop.

If the stock starts to breakout then the order triggers and an automatic stop limit order is submitted. If the stock fades, then the stop limit protects further downside. I keep this stop very tight; the trade will either work or it won’t. If it is not going to work I want to get out quick and with a very small loss.

If it continues to breakout, then the stop gets adjusted up, eventually updated as a trailing stop to protect profits.

My track record is a win/loss ratio of approximately 50%. However, with the tight stops the losses are WAY smaller than the gains.

Next Steps

Come back to the site daily to see the Momentum Surge candidates. I’ll continue to provide more information on the specifics of this trading strategy. Over time I will give the exact mechanics of how this strategy works and how to trade it.

However, if this type of trading is too active for you, then please consider the TQQQ Trading Strategy. The TQQQ Trading Strategy trades much less frequently, and is very easy to do if you have a job and access to a computer where you can pull up TradingView. And with performance that is much better than the S&P 500, it can help grow your wealth much quicker.

TQQQ Trading Strategy

Feature Image: David – Infrared HDR Orlando Florida