What is the Short Skirt Trade?

A SHORT SKIRT is a quick scalp trade made in the direction of the short-term trend. The setup occurs after the S&P has made a sharp "impulse" move. The pattern tends to look like a continuation flag on a 1-minute chart. We call it a "Short Skirt" because the trade usually lasts between 2 - 10 minutes. The concept is - "quick in and quick out without getting caught." We try to look for Short Skirt setups that have the potential for a minimum of three points in the trade. An initial 3-point STOP is placed from the trade entry price. The objective for the trade is a retest of the previous swing high or low, even though the market often makes a new leg up or down. Our mechanical system that we run on Trade Station has a win/loss ratio of 66%. However, through proprietary volatility filters and some basic pattern recognition, our real time track record for the past three years in our online trading room, as documented by the room members, has been 90%. ... more

A SHORT SKIRT is a quick scalp trade made in the direction of the short-term trend. The setup occurs after the S&P has made a sharp "impulse" move. The pattern tends to look like a continuation flag on a 1-minute chart. We call it a "Short Skirt" because the trade usually lasts between 3 - 10 minutes. The concept is - "quick in and quick out without getting caught." We try to look for Short Skirt setups that have the potential for a minimum of three points in the trade. This is to allow for a minimum of ? point slippage in and ? point slippage out. A 2-point STOP is placed from the trade entry price. The objective for the trade is a retest of the previous swing high or low, even though the market often makes a new leg up or down. How do you measure market breadth, put call ratio, and volume? Market breadth is monitored by looking at the number of advancing issues minus the number of declining issues on the NYSE. Put/Call data is provided by the individual exchanges. ... more