Today I was late returning from lunch so had not prepared for the trading day. Preparation is key to my trading so I do not trade if I have not gone through the whole of my pre-market check-list.
So…
The trades below are purely hypothetical. As it turned out today was a tricky one for the system. That’ll be the laws of probability working themselves out…
14:35:00 Trade One: Pre-market down trend with a small gap and negative $TICKs so I was looking for a DivW or a $TICK hook down to confirm an entry short. A $TICK hook emeeged and I took the trade on the lowest tick of the move and was stopped for a full -1R.
R-Multiples: Entry 1 -1.00R Total -1.00R
15:10:00 Trade Tow: DivA against Gap Close resistance failed as soon as I was in the trade for another -1R.
R-Multiples: Entry 1 -1.00R Total -1.00R
15:36:00 Trade Three: DivA against prior resistance was followed very closely with a DivW that I stopped and reversed into…
R-Multiples: Entry 1 -0.13R Total -0.13R
15:40:00 Trade Four: DivW trend
R-Multiples: Entry 1 1.25R Total 1.25R
15:49:00 Trade Five: DivA with test of high of day and past resistance. As this trade signalled in consolidation I took the trade imediatly and did not wait for confirmation of trend change with a close below the low of the high bar.
R-Multiples: Entry 1 1.25R Entry 2 -0.13R Total 1.12R
Total 0.25R before commissions
This result shows the power of a system that has tight stops and larger R winners than losers. The system had 66% losers and still came out at close to break-even.