Highlighted Trades - 03/21/2024
We had an unusually quiet day for our system - only entering 4 positions today. I’ve run a backtest, and I can confirm that our bot was working correctly today. Our model just didn’t trigger very often.
Our goal with this system has been quality over quantity, but I can concede that this is a bit much. We are looking into ways we can increase output from our system without significantly impacting its quality.
In the meantime, let’s look at some of today’s trades.
Our most profitable trade of the day was a long on PANW, returning 0.91%. This trade’s entry is nearly perfect for me. Every sign we want to see is showing clearly. Looking at the performance of the trade, we can see that we almost got stopped out a few times early in the position. This makes me wonder if we can improve performance by making it harder for the system to exit a trade. What if, instead of just crossing over the Tenkan-Sen line, we also require the MACD to be working against us? Obviously, stricter exit conditions won’t help us increase the number of trades we see, but if it improves performance, it’s still something we’re interested in.
Our biggest loser today was a short on SJM, bringing in a relatively tame loss of 0.34%. The Kijun-Sen line is pretty flat here, but overall the entry looks solid. There are no readily apparent red flags here - at least not severe enough for me to want to avoid this trade entirely. Aside from maybe under-allocating due to the flat trend line, I probably would have gone in here.
The only thing I want to note on this trade is that MACD goes extremely flat later in the day. Our signal had expired by then, but had we still been looking at re-entries, that would have been a much more substantial red flag.
Overall, today was a successful day for our system - if a quiet one. We’re satisfied with performance so far, but would like to increase quantity. Research is ongoing, and we’ll give updates on any upcoming changes we expect.
That’s all I have for you today - thank you for reading and happy trading!
