A trading strategy that’s been proven for nearly 50 years

May 14th, 2024

A trading strategy is only as effective as the trader behind it. When Steven Primo of Pro Trader Strategies first started on the trading floor at the Pacific Stock Exchange 47 years ago, he was introduced to a trading method that has helped him definitively over the decades.

In the recent NinjaTrader Ecosystem webinar, “A Trading Strategy Proven for Nearly 50 Years,” Primo presented two of the four “rules” of this method.

A trading strategy usable for any market in any time frame

Primo displayed a directionless market chart where his two rules generate a buy signal in the middle of a directionless market, potentially capturing +190 points. This is a pattern recognition strategy: It looks for a pattern that repeats itself in any market and any time frame. Primo and his team showed us how to identify this pattern.

Designed for traders looking to catch momentum, this trading strategy often generates signals when they appear on a chart that seems to have no momentum at all. The strategy is highly sensitive to signals based on patterns and fine-tuned for momentum entering based on pattern.

Primo stated that back in his day on the floor of the stock exchange, it was common for there to only be two to three minutes per trade. Now, his method has been tweaked and designed to hold onto positions for days, weeks, or even months at a time.

A trading strategy that applies to all markets and time frames

Consistency is the goal of this strategy and proven trading method, but consistency doesn’t mean always winning or winning all your trades, Primo says. Consistency is an awareness that you will have losses and that that’s okay.

He added: This strategy does not do the trading for you. You’re in charge of your trading. They do not force-feed you signals or give you nightly setups but instead teach you how to do this on your own and in the simplest way possible.

The first two rules of this trading strategy are outlined in the full presentation. Watch a clip here:

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