Meta Strategy Trading Portfolio – Probability Map Update.

Chop Fest

Volatility is picking up in the beginning of September, but, unfortunately, it is multi-directional and choppy.

It is an environment where the vast majority of traders bleed money and, most of the time, it is much healthier to wait patiently for a decisive move out of the chop zone.

Being focussed on a swing-trading time-frame of 4-8 weeks, it becomes increasingly hard to resist FOMO: It is amazing how often giving in to such an impulse finally marks the top as human behavior is incredibly synchronous.

Once everyone capitulates into buying, there is no one left to sustain a rally.

The failed breakout to a new ATH following bad job numbers is a perfect example.