Highlighted Trades - 02/29/2024
In total, we made 63 trades today: 31 long and 32 short. Let’s examine the big winners and losers.
Our best trade of the day was this long on CRM, where we made 1.72%! Our target exit was placed really well here, since we wouldn’t have made nearly as much if we’d held until the TK’s crossed again. The entry conditions weren’t perfect, however. The lagging line and momentum both look good at our time of entry, but the TK lines are mostly stuck together before we get in. Our system called its entry a few candles after the cross, which somewhat mitigates this, but regardless, it’s a red flag about getting into the position. It was a very good trade, but not really a textbook example.
Our best short of the day was on PFE, and started about 75 minutes before close. The trade is still open, but up 0.6% so far. The cross is much stronger here, but the lagging line is an issue on this one. For a bearish position, we usually want to see our lagging line below the price action at its level. At our moment of entry, the lagging line is inside of a candle, as opposed to below it, which can warn that there isn’t the bearish momentum we want to see. There is some argument here to ignore that, since its an unusually large green candle at the end of the lagging line, which could have mitigated this. Again, we’re seeing a trade that’s going fairly well, but that we aren’t sure we would have taken due to a sub-optimal set of entry conditions.
Our worst trade of the day was this long position on ETSY, where we lost 0.79%, and unfortunately, its entry conditions look stronger than either of our big winners. There’s decent momentum going in, the cross is pretty reasonable, and even lagging line above price action. You could have mitigated a bigger loss here by using the Tenkan-Sen line as a moving stop loss, but in fairness that also would have reduced the profitability of the PFE trade we just went through.
The last trade I want to highlight here is this long on MGM, where we made 1.48%. The entry isn’t ideal, but it’s quite strong. There’s a red flag in that the lagging line isn’t above price action, but there’s strong momentum at our time of entry, which, as expected, puts the lagging line above price action just a few candles later. Even if you had used the strategy of “Tenkan-Sen as a dynamic stop loss”, re-entries would have meant you would have seen a lot of the profit from this trade. This is a trade that makes me question our use of target exit prices, because without one, we would still be in this trade. Time will tell if that would have made it more or less profitable, but the momentum remains very strong here.
That’s all I have for you tonight. Thank you for reading, and happy trading!
