Highlighted Trades - 04/09/2024
We had 8 trades today - 6 long and 2 short - across 6 unique tickers. Let’s check them out.
Our best trade of the day was a long on RMD. We made 1.23% here, no re-entries. No notes here, this trade is excellent. The only thing I would have found slightly concerning is the flat Kijun-Sen line, but with so much bullish momentum heading past a new high of day during our entry, it was apparent that the Kijun wasn’t going to remain flat. I also completely agree with our system’s exit point. If you took this trade, you theoretically could have made more by holding until EOD, but MACD had just started to go negative when we got out, plus we respect the system’s moving stop loss. Even if our system had ignored MACD, no re-entries would have come the rest of the day - we didn’t see another definitive peak above the Tenkan-Sen line.
This is really an ideal trade for our system. It’s everything we’re looking for, and I would have taken it every time.
Our biggest loser today was a short on ROK - again with no re-entries. Our loss was pretty benign here at 0.16%, but it’s still worth analyzing. MACD is mostly flat throughout the day - which checks out with the sideways momentum we see on the chart. Overall, the sideways momentum is the main reason against taking this trade, but at the same time, it’s understandable if you did anyways. The Kijun-Sen line is flat going into our entry, but there’s enough bearish momentum and it’s close enough to a new low that it’s understandable if you chose to disregard that red flag; I probably would have. This is a trade that looks solid on paper, but just didn’t work out for us in practice. With the loss being fairly small here, it’s a bit easier to accept.
I’d also like to highlight this long position on CZR. The return isn’t as good as our trade on RMD - it’s only 0.31% - but the entry condition is quite solid here for the same reason. Kijun-Sen is mostly flat going in, but the momentum is strong enough that it slopes upwards almost immediately after we enter. These 2 trades, among others, demonstrate that even though it’s important to know your red flags when trading, it’s also important to know the exceptions and weaknesses of those red flags.
That’s all I have for you tonight - thank you for reading and happy trading!
