Financial Market Analytics Structure

I put this together in March of 2021 to give the FMA some structure…

Over the weekend I sat down to devise a format for the FMA. Since it was launched last May it has been a great success. However, there has been one problem that has bothered me, there was no form to the FMA.

The paid sports content has a simple format. In the morning, TSP Daily is issued to give you some thoughts and a look at the day ahead. Then, after TSP Daily goes out, the robots take over in TSP Live and report any qualifying angles. I throw in some notes with those alerts from time to time (things I see in the sports markets, wagering strategies, coaching notes, whatever). It’s pretty simple.

The FMA never had such a system. Sure, I send out the Telegram Trading overview in the morning, then I send out FMA #1 for that day. So, there’s some form. However after that time, I don’t really have a structure. It’s more fly by the seat of the pants (based on what the market gives). As someone who is analytical, I don’t do well with flying by the seat of my pants. Everything should have a structure for efficiency and optimization.

So, moving forward the FMA will operate as follows. No major changes here, no content changes really, just what to expect on a day to day basis.

  1. Every morning the market is open, I will send out the Telegram Trading update. The update will cover an initial assessment for the day ahead and key support and resistance levels in the S&P 500 as calculated by my trading algorithm.
  2. Every morning the market is open, I will send out FMA #1. FMA #1 will go out either prior to the market open or within a few hours of the open. It will just depend on what’s going on in the market as to whether it is better to send it prior to market open (usually) or wait until we see some initial trading.
  3. Once both of the above reports go out, then additional reports will only be issued that day for the following events…
    • There is a change (add/drop/adjustment) to the FMA List positions.
    • There is a change (add/drop/adjustment) to the FMA Options List positions.
    • There is a change (add/drop/adjustment) to the FMA Radar positions.
    • There is a change in how the algorithm views the market.
    • There is a major market event.

Now you might say, isn’t that what you have always done? Not really, some days in FMA, just like TSP Live, there is really nothing to report after the initial alerts go out (Items #1 & #2 above). However, I always felt compelled to issue alerts throughout the trading day just to let you know I was still here and watching. Some alerts would basically be… “nothing happening, let’s see what happens later.” LOL! So, it is just unnecessary to send an alert and have people at work or driving and then taking the time to login to make sure they aren’t missing a key trade. Then after pulling over to read the alert they see… “Hey, nothing’s happening. We’ll wait and see when that changes.” Or I would wait until market close and say, “Nothing much happened today, let’s see what happens tomorrow”. It’s time out of your day and alerts that really do nothing for the FMA or its content. I did it just so you knew I was still here and not leaving you floating in the middle of the trading ocean. LOL! I am pretty sure you know I am here already, around the clock. Many believe I am really a robot myself.

So, what all this means is some days, after the initial Telegram and FMA update (FMA #1), there may not be any further alerts that day. If it is a flat or an uneventful day of trading and/or within the algorithm, with no unusual activity or FMA List/FMA Radar changes, it could be a quiet day for the FMA. Then of course other days there could be 3,4,5,6+ alerts. It’ll depend what the market gives. Trading is unique in that you can literally go 1-2 weeks without any new trades or position changes, and then have another week where there are 5-6 changes or more. It really all depends, and I won’t force anything just to prevent it from being a boring day or week. A trade is either there or it isn’t.

Also, just an FYI with regard to the FMA Radar, FMA Options List or FMA List positions. An alert WILL NOT automatically/immediately go out when an FMA List position, FMA Options List position or FMA Radar position either hits its calculated target or its calculated eject/removal price. When either of those happen, an alert will eventually go at some point that day to confirm the closure and calculate the ROI gain or loss, however the alert WILL NOT go out automatically when a position hits a calculated target. Why? I don’t want you relying on FMA Alerts to let you know a position has been closed. Proper trading requires you to have stop losses and profit targets set with your broker and I don’t want anyone relying on FMA Alerts to be that stop loss or profit limit order. There are so many issues that can occur with alerts and it is vital to have these parameters programmed with your broker. Sometimes a target can be achieved for 3 seconds and then never get to that level again. If you rely on FMA Alerts to let you know, it’ll be too late. If you have those parameters set with your broker, you would be out of the trade. So, I have intentionally not programmed automatic alerts for positions hitting key profit target or loss points.

So, for the FMA List, the “removal” price is listed by each position as is the profit target. For the FMA Radar there are Algorithm Target and Eject prices listed. It is up to you, should you decide to pursue any trades, to have your target and stop loss in place. Alerts usually go out same day when a trade hits a target (either profit or loss) but not necessarily at the moment that target is hit. If a position is closed early for some reason (which means a profit or loss target is not hit), then of course the alert will go out as soon as I am making the decision to close my trade early (again before either target or loss were achieved).

Sorry for the long breakdown, but just trying to tighten up the form and flow of the FMA. As I said, no major content changes, just optimization of the existing framework. Good luck in your trades!