October Wrap-up...

The wrap-up for October could pretty much be a duplicate of the post last month, "Patience, Patience, Patience". It was another miserable month; not because we lost money, but because there just weren't many trades.

As discussed last time, a trading system which profits in times of great volatility (think 2001 or 2008) gets fairly boring in quiet times (think now). To give you an idea of what low volatility looks like, take a look at the SPY chart from September and October. Pretty boring, eh? Just a slow progression upwards... great for trend traders... not so good for volatility traders.

While October was profitable, we only had 4 trades. Yep, that's it, a measly four trades. Remember that over 10 years we have averaged north of 30 trades per month and you see just how slow it was. it's times like these we need lots of patience.

If it's any consolation, November promises to be an improvement with five trades already taking place in the first two days. Here's to volatility!

Good Trading...