Highlighted Trades - 02/28/2024
Our best trade of the day was this long position on CSGP, where we got in at $85.45. We never got close to our stop, or hit our exit, so we held the position until technicals turned negative at $86.38, for a return of 1.09%. The only red flag I see here is the TK-cross that got us into this position. The cross has a strong angle to it, but previously the TK lines were mostly stuck together. The lagging line looks great at the time of entry, as do the candles that lead us into the position. This trade isn’t perfect by any means, but it’s got a lot going for it in terms of fitting our guidelines.
Our best short came later in the day, and even though we didn’t make as much here (0.84%), I think I like its entry conditions better. The cross starts out questionable, but looking at the TK lines prior to it, there’s a much clearer separation. We still have the lagging line in a good position, as well as strong momentum going into the trade. Even though this one turned out to be less profitable, I think the odds are much higher of a human trader having taken this one.
Our worst trade of the day was on ALB. The entry here is questionable, but not unreasonable. The cross is strong, and there’s some clear upwards momentum on the way in. That said, the lagging line is just barely peaking through the top of price action. Our current version of the algorithm doesn’t consider the lagging line before entering a trade - we include it in analysis graphs to show what a human trader would have seen - but the version we’re experimenting on wants it to be clearly above the price action when we enter the trade. This one would have been rejected. Additionally, even if you had taken it, you would have had an opportunity to cut your losses fairly early, using the common strategy of Tenkan-Sen line as a stop loss.
Overall, while there are some red flags to this trade, none of them are particularly glaring. Some trades simply don’t work out, no matter how good they look at the moment of entry.
Overall, we made 44 trades today - 24 long and 20 short. That’s all I have for you tonight. Thanks for reading, and happy trading!
