This wasn’t a clean bear market – it was a long, choppy grind designed to wear you down. This chapter shows how ITMB handled it step by step, cutting losses quickly and letting the few big winners do the heavy lifting.
Chapter 16 puts the ITMB strategy through the ultimate stress-test. Since you already know the basics of our signals and setups, let’s cut right to the chase and define the specific concepts this chapter throws at us:
Discretionary Overrides: Panicking and changing your trading rules on the fly because of extreme breaking news. The system survived the historic 9/11 market closure without using them, proving exactly why we rely purely on predefined, objective signals.
The Longest Bear: The miserable 2000–2003 market downturn. It was a drawn-out, two-year grind that tested patience more than nerve. Despite the chaos, the I-T-M-B strategy handled it mechanically and managed to more than double a starting account.
The 9/11 Shock: An unprecedented historic event that forced the longest market closure since 1933. It caused SPY to drop 7.1% on reopening, the steepest single-day percentage fall since 1987.
Nothingburgers: Trades that just chop around and end in tiny gains or small losses. They are annoying, but keeping those losses small is exactly what keeps us in the game for the massive wins.
Saw-tooth Pattern: A jagged, messy market decline. Instead of a clean downward drop, it features deep falls, sharp rallies, and then even deeper falls again.
Trading The Bears
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Please note that Heather answers all questions at the end of the ITM Blog.
Happy trading!
