Highlighted Trades: 02/26/2024
Today was a big day for short positions. Of the 51 positions we took on today, 32 were shorts and only 19 longs.
Our best trade overall today was this short on PAYC, netting a return of 0.88%. As is typical for our big winners of the day, I don’t have many critiques to give here. My one crticism is that the TK-cross that got us in could have been stronger. We’re looking at a cross-under, but the preceding state of T > K only lasted about 6 candles. This is one of the factors being incorporated into our new system. A previous duration of 6 candles isn’t a complete deal breaker for a trade to be profitable, but it is a bit light. That aside, this one looks great. There was strong momentum going into the trade, and even though it somewhat turned around near the end, it went over pretty smoothly.
It was a pretty light day for long trades, with our best one today only making 0.11%. The one thing that gives me some pause about this trade is the large green candle preceding our entry. Due to technical limitations, our bot can only send entry notifications at the end of a 5 minute candle. If it was able to send notifications during the candle instead, I suspect we could have gotten in earlier for a larger profit. The opening stretch is also pretty volatile, which, were I trading live, would have given me some pause in taking this one. I don’t think this is necessarily a bad trade, but it’s not a great one, and there are a lot of warning signs here that a human trader could have picked up on.
Our worst trade of the day was, all things considered, fairly benign - losing only 0.61%. Unfortunately, I’m only really seeing one red flag to it. There’s good momentum going into the trade, the lagging line is below price action at the time, and it’s not following some highly unusual volatility. However, the TK-cross that leads into this trade is incredibly weak. I can say definitively that this is something our updated system would have refused to enter, and for a trader familiar with TK-cross strategies, I think the conclusion would have been the same. Even though this trade wasn’t a major loser, a loss is a loss, and I’m at least glad to see there were substantial red flags prior to entry.
Lastly, I’d like to highlight this trade on HUM. We made about 0.58% off of it, but this one was a beauty. There were no major red flags going into it, and its performance represented that: incredibly smooth movement downwards for nearly the rest of the day.
That’s all I have for you tonight. Thank you for reading - and happy trading!
