Real World  |  FEB 2000

Seasonal Trades And The Channel Breakout System by John L.Momsen

Seasonal Trades And The Channel Breakout System by John L.Momsen Many seasonal trades have been consistently profitable over many years, but using them can be tricky because you never know if this will be the year that events won’t follow the established patterns. You can gauge whether patterns are breaking as expected by using the channel breakout system. Seasonal trades often come with 90%success rates, but that’s historical information. You need to know what's happening now as you put on a trade. Nothing's more frustrating than entering - and exiting - at the historical right time, only to take a loss. Here, then,is a technique for a seasonal trade confirming your entry point using the channel breakout system, versions of which are widespread in trading. Using channel breakout, you can bump up your personal success rate on seasonals to over the 90% mark. As an experienced futures trader, I am a confirmed believer in the power and profitability of seasonal trading. For the uninitiated, seasonals are defined as the up and down market trends or yearly cycles that recur at approximately the same time each year. A seasonal trader normally adheres to a calendar of entry and exit dates as the bases for making trading decisions.

by John L. Momsen