Highlighted Trades - 02/27/2024
We made 55 trades today - 38 long and 17 short. Let’s dive right into our more interesting ones.
Our most profitable trade of the day, thus far, is one we entered right near market close. We got in at $21.51, and with WBA up to $21.63, we’re up 0.55% thus far. Examining the chart, I like this trade, but I wouldn’t say I love it. The TK-cross isn’t bad, but it’s relatively weak. The lagging line is also above price-action, but the fact that it only peaks above right when we enter the trade makes me suspect that there isn’t a lot of bullish momentum when we enter - something we can also see on the chart. The trade is doing well so far, but as a human trader, I’m not certain I would have taken it. If I had, I wouldn’t have allocated a lot of capital into it.
Our best short of the day isn’t textbook, but I think it’s a good deal stronger. We only made 0.46% here, but I think there’s more to be said of our entry. The TK-cross is a bit flawed, given the 2 lines were stuck together before we got it, but considering the lagging line and previous price action, there’s clearly some more downward momentum there. The other flaw I’d call out are the candles right before our entry, generally moving upwards right before we got in. Neither of our biggest winners today were really textbook today - there were some clear red flags about both.
Our worst trade of the day was a long on ZION. There aren’t a lot of red flags around our entry strategy here (good momentum, respectable cross, lagging line about where we want to see it), but I think our exit was pretty flawed. Momentum turned negative almost immediately after our entry point, and I think a human trader would have recognized that pretty early. A common exit strategy with TK-crosses is to get out of the trade once it closes below the Tenkan-Sen line (the algorithm currently in the works uses this strategy pretty heavily), and under that strategy, you could have cut losses very early here.
All in all, I feel today was a weaker day for our system. While we had plenty of profitable trades, there weren’t really any textbook examples of what we’re looking for, and this is because our system isn’t specific enough on which red flags to avoid. This instills more optimism in me for our next iteration.
That’s all I have for you tonight. Thank you for reading - and happy trading!
