For July 18 – 22, 2022
The Intra-Day Momentum Method (IDMM) applied to the SPY, QQQ, and DIA. Using a Daily Directional Indicator (DDI) and an Intra-Day Reversal Filter. This strategy will be referred to as IDMM-DDIR.
The rules presented above have been applied to the SPY, QQQ, and DIA. The results are as follows:
On the far right, we adjust the number of shares to normalize the amount of risk. This is based on the probable movement of the market. We are using $500 in this instance. Because we do not use a stop-loss, the risk is to some degree unlimited. The calculation for normalizing risk is:
Distance R = ML1 – Open
# of Shares = $Simulated Risk / Distance R