Highlighted Trades - 04/11/2024
We saw 7 trades today: 5 long and 2 short across 4 unique tickers. Let’s check them out.
The tickers on which we made the biggest profit and loss of the day will be discussed below. First, I want to examine YUM today. We made 3 long entries here, and mostly broke even (down 0.03% between them). What’s interesting here is that these 3 contain our most and least profitable individual positions of the day.
We made 0.20% on our initial entry, making it our most profitable position of the day. Looking at our entry, I think there’s a lot to like. The Kijun-Sen is relatively flat, but as we’ve seen, there’s enough bullish momentum to offset that concern. MACD is positive and increasing, but it is relatively weak, which would have given me some pause.
On our second entry, we lose roughly 0.06%. It’s a false breakout, and a pretty quick one. MACD is even weaker here. If it gave you mild concerns during the initial entry, there’s an argument for those concerns to have been much greater here.
Our final entry lost us 0.17%, making it our worst individual position of the day. The real reason this one was a loser is that we only re-entered several candles after the price broke above the Tenkan-Sen line. The reason our system did this is that it won’t re-enter a position unless the MACD agrees. The problem is that by the time MACD went positive again, we were buying at a much higher price. Had we re-entered immediately, we could have made profit here, or at least mitigated some of the loss. Due to weak MACD, I don’t think I would have taken this trade at face value. There’s an argument here to take the re-entry immediately, and an argument to ignore it entirely. As the system recommended, it waited to re-enter because it was waiting on what, to a human trader, is obviously a weak signal.
Our YUM trades today were some of the more interesting we’ve seen. Even though it ended up very slightly in the red for us, I’m confident a human trader following along would have out-performed the algorithm, and potentially made some solid profit here.
Our most profitable ticker of the day was MHK. We made 1 short trade, and exited for a return of 0.16%. Overall, the entry is solid here. MACD isn’t rendered on this chart, but it’s negative and increasingly so at our moment of entry. The only reason I might have hesitated is that it’s a little close to opening for my liking, but with no real red flags, there weren’t a lot of reasons to miss this trade.
Our biggest losing ticker of the day was IBM. Again, it’s only 1 position here - and a loss of 0.15%. My take here is pretty similar to the trade on MHK discussed above. There aren’t any major red flags here. Premarket data is a bit choppy - but that’s fairly normal and doesn’t suggest that price movement during the trading day will have that same inconsistency. Unfortunate to say, but I would have taken this position as well.
That’s all I have for you tonight - thank you for reading, and happy trading!
