Highlighted Trades - 03/13/2024
Today was a quiet day for our algorithm - only 33 trades: 22 long and 12 short. Let’s look at some interesting subjects from among them.
Our biggest win today was a short on MPWR, returning 1.49%. It’s hard to see due to our stop loss marker, but the cross here was something we see often. The cross is weak due to the TK-lines being stuck together, but with both of them sloping downwards after the cross, this red flag is mitigated somewhat. That aside, the entry looks fairly strong. There’s bearish momentum forming, the lagging line is below price action, the candles are just breaking below the Tenkan-Sen line, and our stop loss is fairly reasonable (if a bit conservative for my liking). This isn’t a textbook trade, but it’s overall very solid.
Our best long of the day is less impressive (returning only 0.65%), but also has a solid entry setup. Again, the TK-lines are stuck together beforehand, but the cross is strong, and the Tenkan-Sen slopes up sharply. The flat Kijun-Sen line is a red flag, but the lagging line is far above price action, and after the green candle preceding our entry, bullish momentum is very strong. Again, we have a trade that isn’t textbook, but gives us a lot of reasons to take it.
Our biggest loser today is, in many ways, the product of bad luck (more so than most losing trades). Our entry isn’t ideal - the TK-lines are firmly stuck together beforehand, and the chart is noticeably discontinuous, but it’s not much worse than our winners today. In fact, there were a few opportunities to turn a profit from this trade, either using Tenkan-Sen as a moving stop loss, or waiting for the TK-cross to invert. Unfortunately, on the candle where the cross inverted, we saw an astronomically long wick, reaching just past our stop loss. If we’d exited a single candle before or after that, we would have safely turned a profit. It’s unfortunate, but as traders, we have to accept that even good-looking trades aren’t always going to work out for us.
That’s all I have for you tonight. Thank you for reading - and happy trading!
