Highlighted Trades - 03/04/2024
We saw 57 total trades today - 26 long and 31 short. We had some big winners today, so let’s dive right in.
Our biggest winner today was a short on STLD. We went short at $133.05, and held until our exit at $129.37, for a return of 2.77%. The entry on this isn’t perfect, but I think it has a lot going for it. The cross is fairly strong, and with both TK-lines pointing downwards immediately after, it lends some additional credence to a bearish position. Combine that with some solid bearish momentum going into it, and an extremely sensible stop loss price, I think there’s a lot to like here. My one critique is that the lagging line is only barely below price action at the time of entry, but given how much looks good about this trade, I feel good saying I would have taken it.
Our best long position was also a big winner, with this trade on NEM bringing in 2.43%. Right away, this trade has a few strengths, but one big problem. This entry immediately follows a highly volatile opening stretch. The price movement isn’t crazy in its range, but looking at how erratic those movements are would have given me pause. The TK-cross, while not ideal, is followed by both TK-lines sloping upwards, which is a nice sign. As well, the lagging line is a good deal above price action at its level, further suggesting bullish momentum. The lagging line indicator is a bit less strong here, since its still in the previous day’s prices. Looking at the 3-4 candles prior to our entry, they do generally slope upwards, with our stop loss in a pretty realistic spot as well. It’s a good trade, but by no means textbook. If I had taken this, I personally would have under-allocated it.
Our biggest loser today was pretty tame in comparison, losing 1.44%. I think there’s room for debate on this one. On one hand, there’s certainly bearish momentum at our moment of entry. On the other hand, I think there’s too much bearish movement, especially comparing it to yesterday’s price range. The TK-cross is also kind of just okay. The lines are stuck together beforehand, and after the cross, only one of them is sloped downwards. The lagging line, on a definition level, passes our test and is below price action, but simultaneously illustrates my biggest reason not to take this trade. It directly shows how sharp recent movements have been, and how extreme relative to previous price ranges. There’s an argument to take this trade, but even if a human would have, you would have immediately recognized it as being pretty high-risk, high-reward.
That’s all I have for you tonight. Thank you for reading, and happy trading!
