No Country for Bad Trades: Momentum

In this episode, Cam and Joel go deeper into the force behind the Gap and Go strategy: momentum.Cam breaks down what momentum actually means in the market, why stocks can get repriced violently when institutions realize they were wrong, and how that repricing shows up through gaps, volume, and continuation. Using examples like AGL and HWM, they walk through why some stocks keep running long after most traders would have taken profits.The conversation also digs into the data behind momentum trading, including R multiples, maximum favorable excursion, Monte Carlo testing, and why a small percentage of trades can account for the majority of returns.They also cover one of the hardest questions in trading: when do you take profits, and when do you let the trade keep working?Later in the episode, Cam explains how he’s using AI, backtesting, and his own trade history to study momentum, refine his process, and better understand where rules end and human judgment begins.⚠️ Best experienced on Spotify or YouTube - Cam is sharing charts throughout the episode.👉 Join Cam’s trading community:https://whop.com/the-construct-trading/premium-trading-comminty?a=chinashopproductionsChapters00:00 — Introduction01:00 — Momentum Trading vs Other Trading Styles04:00 — AGL Example: When the Market Gets Repriced09:00 — Gap and Go Data: R Multiples and Continuation12:20 — MFE, Breakeven Stops, and Momentum Fading15:00 — Holding Winners vs Taking Profits Too Early19:55 — Monte Carlo Testing: Why a Few Trades Drive Returns23:25 — Silver, Gold, Tesla, ASML, and Reddit: Cam’s Biggest Trades25:15 — The Super Momentum Screener28:05 — Using AI and Backtesting to Study Trading Rules33:50 — R Multiples vs Percentage-Based Profit Targets39:20 — Rethinking Profit Targets and Stop Rules43:00 — Knowing When Momentum Has Died45:20 — Balancing Win Rate, Drawdowns, and Big Returns47:20 — Responsible AI Use Cases for Traders49:40 — What’s Coming Next: Practical AI for TradingSponsors:Our podcast is sponsored by Sue Maki at Fairway Independent Mortgage (MLS# 206048). Licensed in 38 states, if you need anything mortgage-related, reach out to her at [email protected] or give her a call at (520) 977-7904. Tell her 2 Bulls sent you to get the best rates available!If you are interested in signing up with TRADEPRO Academy, you can use our affiliate link here. We receive compensation for any purchases made when using this link, so it's a great way to support the show and learn at the same time! **Use code CHINASHOP15 to save 15%**To contact us, you can email us directly at [email protected] you like our show, please let us know by rating and subscribing on your platform of choice!If you like our show and hate social media, then please tell all your friends!If you have no friends and hate social media and you just want to give us money for advertising to help you find more friends, then you can donate to support the show here!Cam:‍ ‍Cam is a Navy veteran & management consultant turned 8 figure investor & trader. Trading let him retire at 35 & be able to support and provide for his family forever. Now he wants to help others escape the financial system and live the way we were meant to live: free. His system is a rule-based design that can be used for long term investing, swing trading or option selling on any schedule.Follow Cam on TwitterSub to Cam’s YouTube for More!Joel MC:‍ ‍Joel is a power lineman, husband, and father of 2 wonderful daughters. He took up trading as a way of participating in the market more actively than buy and hold ETF investing. Joel has found a true passion in trading futures and would continue to do it even if he never earned (or lost) another dollar, he just enjoys the game. Along with that he has found a community that has grown on him beyond buddies and past friends to what he considers family. Joel's best friend is a doctor in the states he met through trading and have never met in person, while he is up in Canada.Follow Joel on TwitterAdvertising Inquiries: https://redcircle.com/brandsPrivacy & Opt-Out: https://redcircle.com/privacy