Joseph Rinoza Plazo: Four Trading Styles to Win the Bloody Stock Markets


The bear market is here to stay, but four stress-tested trading styles guarantee continued earnings

When the Federal Reserve is left to the economic kitchen, the captains of industry go green in the gills. This quarter, the FED unveiled a spicy CPI, PPI and GDP alphabet noodle soup that left the Fortune 500 with stomach aches. It’s official: two consecutive announcements of negative GDP growth confirm the recession.

As the FED’s quantitative tightening dampens inflation, the recession is expected to linger through 2024. Stock prices are set to continue falling as shaken investors sell to hoist up cash. Does this imply lower profitability for retail traders living off-index and on-exchange? Not necessarily, says Joseph Rinoza Plazo of Plazo Sullivan Roche Capital, a nonprofit research organization that studies automated trading methods for the capital market. In August, the organization ranked four popular trading methods that have protected and increased capital since the start of the 2020 COVID19 lockdowns.

All eyes are on the results, especially since it was also Joseph Plazo who warned of the imminent crash of the cryptocurrency market in January 2021. His chart analysis plotted a drop to $20,000, and maybe $12,000 for bitcoin. Bitcoin hit $17,000 at its recent low. Recent price movements suggest that the USD 17,000 level is being tested again.

Plazo Sullivan Roche Capital has managed multiple live and demo trading accounts on three financial brokers including ICMarkets, FXPro and RoboForex. With over 42 automatic algorithms running various trading styles, four methodologies have proven to be the most resilient against black swan events such as the recent invasion of Ukraine.

Dynamic trade proved to be the least profitable, with an average profit factor of five. The Hydra algorithm is based on classic Bill Williams indicators consisting of Alligator lines, Oscillators and ADX. Entries are made when all indicators confirm a market trend as prices rise until breaking an ADX level of twenty-five. While momentum trading provides the highest barrage of entries, some positions enter at points of exhaustion, leaving a handful of losses.

Engulfing CandleTrading produces higher profit factors of nine on average. The Momentum algorithm uses pattern recognition and marks potential trade entries when large bullish engulfing candles coincide with other signals. These include the neutrality zones breached by the RSI, the ADX trending past twenty-five, and Weiss waves providing final confirmation.

Multi-divergence negotiation accumulated variable profit factors depending on the asset class. The highest recorded value was a profit factor of 200 by the almighty algorithm. This unique automaton analyzes up to eleven oscillator divergences with confirmation provided by price action described by moving averages and market structure.

Trading Harmonic Patterns proved to be the most resilient of all trading styles. An automatic scanner looks for more than nine patterns based on Fibonacci levels and executes limit orders based on bullish or bearish signals. To date, over fifty Harmonic trades have been executed with only three losses.

“Markets are recession proof,” says Joseph Rinoza Plazo, “whether prices go up or down, traders can generate steady income. If the price goes up, you buy. If you know a fall is coming, then you sell. The margin helps to increase these profits. What is important is mastering an effective trading style, adequate capital and good market psychology. Never trade what you cannot afford to lose.

“Bear markets attract millionaires,” says co-founder Bertrand Lu Fong, “and that’s especially true when you exercise the discipline of average dollar cost. If you don’t have the risk appetite for trading on margin, then long-term holds via DCA is truly rewarding.

Plazo Sullivan Roche Capital continues with stress testing and algorithm analysis. The results are regularly published on their Telegram, Discord and social networks.

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Company Name: Plazo Sullival Roche Capitale
Contact person: Phoebe Randall
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Town: Mahe
Country: Seychelles


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