Highlighted Trades: 02/21/2024

Our best trade today (so far) is this long on DGX. It’s still open, and with technicals showing no signs of turning around, we may well hold this until it hits our target exit. We got in at $124.93. It’s currently up to $126.73, with a target exit of $126.96. That puts us up 1.44%, and pretty close to our target price.

Our best short of the day was a much more erratic trade. We entered in the morning, at $148.91, and exited due to poor technicals later that afternoon, for a return of 0.36%. Needless to say, today wasn’t an impressive one for short trades. If nothing else, this trade was a example of our system responding well to technicals. It was able to exit for a nice profit, but had it kept holding, we’d be looking at a much smaller return here.

This trade is the worst we made today, losing us 1.29% - are there any red flags we could have spotted ahead of time? The opening looks pretty volatile, but would it have crossed our thresholds?

Tentatively, we’re looking at restricting trading when the 2 hour price range is above 4%, and if any candle in the last 26 periods is greater than 1% tall (wick included). Between open and our entry point, we saw a low price of $38.96, and a high of $39.82 - for a range of 2.2%. This means that we would have passed that first check, but the biggest candle began at 9:35 AM, ranging from $39.11 to $39.54 - for a range of 1.1%, FAILING our second check! Therefore, under our new experimental system, we would have flagged this as a fake-out and not notified it. We’ll be doing some more testing before deciding whether to implement this change, but this is a good example of a losing trade it would have filtered out.

Overall, we made 54 trades today - 33 long and 21 short. That’s all I have for you tonight. Thank you for reading, and happy trading!