Highlighted Trades - 02/12/2024

The best trade we saw today was this long on NEM. We got in at $33 even, and exited at $33.61 for a return of 1.83%. This is a trade I’m really happy with! My only note here is that the stock price got close to our stop loss, and nearly cost us all of this profit - which might suggest that we should move our stop losses a bit further out. That aside, it all looks good here. Technicals almost turned sour, but ultimately never did, and our target exit was fairly close to the high of day price. This was a really clean trade overall!

We made our best short today on KIM, for a net return of 1.18%. Once again, the only major criticism I have is that the price got kind of close to our stop loss price, nearly costing us all of this profit. Another thing that concerns me is how the stock just barely hit our target exit, before bouncing back up. Technicals, even at the end of the day, looked good - meaning that if we had missed our exit, we’d still be holding this position, and now for significantly less profit. I’m interested in rolling out trailing stop losses, as these might have helped to mitigate this risk here.

In my opinion, our worst trade of the day was fairly avoidable. We lost 2.1% going long on TRMB, and I think a human trader would have recognized this as a clear fake-out. This is pretty similar to our worst trade of last week (mentioned here), and leads me to believe that some kind of sanity check here could do us a lot of favors. We’re mostly focused on developing a completely new algorithm as a plan B should this one under-perform, but this is something to keep in mind if we decide to stick with this one.

That’s all I have for you tonight - thanks for reading and happy trading!