Thursday, February 27, 2014

Closing MCP Trading Position, Leaving Core Long position in place

With volatility about to increase even more, I want my trading positions to take advantage of that. I had a feeling MCP would pullback/consolidate and I should have removed it from a trading portfolio then. If I had only 1 MCP position or if I had a smaller portfolio and I was trading MCP for the longer term to keep down transaction costs, I'd stick with it as I do love it for a primary bull trend asset, for instance...

 There are VERY few 60 min charts leading positive like this in this market and basing, so I believe in MCP, it just doesn't belong in a model that's for trading right now.

The core MCP position is up 10%, the trading position is down -1.23%.

Basically I want to make some room for quicker trades that should do well on increasing volatility soon.

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