So far I've shown you 2 simple trading models that use 1 indicator per model: a Golden/Death Cross model and an Initial Claims model.
Here's the beauty. When you combine 2 simple ideas and models together, you make it even better. Remember, I said traders who combine fundamentals with technicals perform the best.
Here's the new model. It's based off of the Golden/Death Cross Model, but it's combined with an Initial Claims filter.
BUY indicator
Position size: 100% long
*”Golden cross” is when the S&P 500's 50 daily moving average rises above its 200 daily moving average.
*SSO is the S&P 500's 2x leveraged ETF.
SELL indicators
Only SELL your SSO if both of these indicators occur:
Position size: when you sell, shift to 100% cash.
*A “death cross” occurs when the S&P 500's 50 daily moving average crosses below its 200 daily moving average.
Rationale behind the Initial Claims filter
As you can see, the basis of this trading model is still the Golden/Death Cross. The Initial Claims filter helps the Golden/Death Cross model with its main disadvantage. I said on the Golden/Death Cross model
