Momentum Hunter LLC

Momentum Hunter LLC

The Joyful Wayfarer

Independent retail trader and founder of Momentum Hunter LLC who manages capital while traveling as a digital nomad. With 23 years of trading experience, the approach is both mechanical and discretionary. Several momentum swing trading methods based on trend are utilized as market conditions allow. Stage 2 markups and Stage 4 markdowns are the primary backdrop using a disciplined 1% risk rule per trade. The past 4 years have ably demonstrated that a self-funded account can grow substantially through disciplined focus--not luck. These blueprints represent the exact logic used to gather profits while on the road.

THE MOBILE MOMENTUM TRADER: MANAGING A PORTFOLIO FROM AN RV:THE MODERN MOUNTAIN MANAs I look over my life, I have always valued independence and self-reliance. Had I been born 200 years ago, I most likely would have been a mountain man. Those hardy, intrepid explorers, traders, and fur trappers played an important part during the westward expansion of our great nation during the 19th century. Not only were they instrumental in leading pioneers through rugged mountain passes to verdant, fertile valleys—establishing farming and ranching co-ops and communities—they often had to play the role of negotiator, ensuring the safety of the men, women, and children under their care as the wagon trains made their way through often hostile territory.These rugged individualists wore their freedom and safety on their sleeves. Matter-of-fact, no-nonsense, and sober-minded, they lived life on their terms and were the better for it. Their lifestyle caught my interest at the early age of grammar school, and to this day, I feel a common kinship with them.The only drastic difference is the mode of transportation. They mostly traveled by raft, canoe, pack mule, horse, or by foot. I travel in my "white chariot," a 2015 RAM C/V Tradesman (my R.V. of choice). She has ably taken me across the country to some 10 states in search of my own freedom and adventure. Instead of a pack horse to trot me along a mountain trail, I ride an "Iron Horse" in the form of my mountain bike, or a rugged pair of trail running shoes for a rendezvous on some remote forested path. Instead of a raft of logs or a birchbark canoe, I ply various waterways on my paddleboard. Whether it’s paddling on the wild Myakka River with the alligators in Florida, or the fast-paced rapids of the Colorado River outside Grand Junction, Colorado, I share the same thirst for adventure, travel, and freedom that my forebears did.TRADING AS THE ULTIMATE FREEDOM TOOLTrading the financial markets is the perfect compliment for the modern wayfarer. It encompasses very similar traits to our adventurous brethren of the past—such as disciplined, steely focus, the ability to make quick decisions and take action, knowing when to be patient, and pulling the plug quickly when all hell breaks loose.The mountain man lifestyle was not for the faint of heart and required a firm resolve, much like trading requires full commitment to the process here in the 21st century. The stock market does not suffer fools; neither did Carson, Bridger, Johnson, Lewis & Clark, or Colter. They took full responsibility for their decisions come what may and never played the blame game or made excuses. That’s living life free! No blaming, no excuses—just taking responsibility for your decisions and accepting the outcome, whether positive or negative. That is the case for a nomadic financial lifestyle too.So how do we incorporate trading while traveling with a proper mobile trading setup? Let’s explore.THE MOBILE TRADING SETUPThe first rule of a nomadic setup is: Keep it very simple and clutter-free. There is no need for multi-monitor setups that draw massive power and take up precious space.Quality Internet Connection: I pay for my own mobile hotspot connection through my smartphone. Verizon is my provider, as they have the best tower coverage coast-to-coast in the USA. Long gone are the days where one had to pull into a Starbucks, McDonald’s, Lowe’s, or Home Depot just to log into a very unprotected public internet connection.The Power Source: I have a 400-watt inverter that plugs into the cigarette lighter, connecting to the main automobile battery under the hood. It powers my smartphone, my Chromebook laptop, and any portable battery packs I need.Quality Brokerage: Use established firms like Schwab, Fidelity, TradeStation, or Interactive Brokers. Make sure they are governed by the SEC and FINRA. Avoid offshore brokerages with dubious regulatory practices.Much like a carpenter or auto mechanic who has an extensive amount of tools to fit the particular job at hand perfectly, the financial market trader must also equip themselves.STRATEGIES AND SYSTEMSAre you a trend trader or a mean reversion trader? Do you prefer breakouts coming out of established basing patterns like a Cup & Handle, Flat Base, or Double Bottom? Or do you prefer trading pullbacks within a trend?Because the modern-day markets are always in flux, if you trade all year round, you will need more than a couple of strategies to match the overall market moods and swings as it rotates through its natural cycles. You will want to incorporate both mechanical and discretionary rules to establish entry, stop loss, and potential profit exits—but keep them very simple.THE GOLDEN GOOSEIf your goal is to trade full-time for the next 10, 20, or 40 years, the most important rule is to adopt the 1% risk rule per your account size and stick to it religiously. This is the "Golden Goose" of longevity. By never risking more than 1% of your total capital on a single trade, you ensure that even a string of losses cannot take you out of the game.MARKET INTERNALS AND SENTIMENTLater in the evening, I check for market internals to gauge the health of the overall trend. Two symbols provide excellent data for identifying market extremes that lead to reversals in the S&P 500:The Call/Put Ratio ($CPC): I look at the 10-day Simple Moving Average (SMA).If the 10-day SMA reaches an extreme of 1.00 or higher, the market is extremely oversold, often leading to a rally off the bottom.If the 10-day SMA reaches an extreme of 0.80 or lower, the market is extremely overbought, leading to a sell-off and lower prices.The Arms Index ($TRIN):If the 1-day SMA of the TRIN is at or above 2.0, I will be better off not placing a sell entry, as chances are great the stock will rally.If the 1-day SMA of the TRIN is at 0.50 or lower, a sell-off to the downside is likely.Keeping tabs with these two indicators can help prevent unpleasant surprises. If my scans show a "perfect" entry setup, but the market internals are at overbought/ oversold extremes, I wait for a better environment.AT-A-GLANCE TOOLS FOR THE NOMADIC TRADERWhen you are on the road, you need tools that give you the "big picture" quickly:FINVIZ Market Heat Map: This provides a color-coded guide of the 11 S&P 500 sectors and heavier weighted assets. It shows you instantly whether the day was overall Green (Bullish) or Red (Bearish). It also gives you the percentage of stocks above or below their respective 50 and 200 SMAs, which is a great overall indicator of market health.CNN Business Fear & Greed Index: This uses seven sentiment gauges to rank the market from Extreme Fear to Extreme Greed. Extreme readings in either direction often lead to bullish or bearish reversals. It is a fantastic tool for depicting the overall sentiment of all market participants.TAKING RESPONSIBILITYIn reality, trading directly from your vehicle is no different than a room or office in a primary residence. My routine is to run through my watchlists or screeners at the end of the day, utilizing a charting template that I have confidence in for the current market climate. I will place a trade long or short depending on the stock futures and overall market trend, entering all the data specifically in my spiral notebook.This lifestyle is about more than just money; it’s about the freedom to choose your own path, just like the mountain men of the 1800s. By combining modern technology with disciplined risk management, you can hunt for momentum from anywhere the road takes you.