Highlighted Trades - 04/16/2024
We’ve had our quietest day yet with the day trade bot - calling only 2 long positions today, both on NVDA.
This isn’t really intended for the system; we would like for it to be more active than this. However, we’ll always prefer it calling no trades to it calling bad trades. The name of the game right now is quality over quantity. Even though, as you’ll see in a second, these 2 trades weren’t particularly successful, we would prefer to limit our system to a few poor trades than to include more unsuccessful positions.
Even though today was unimpressive, our system has ultimately been performing well. We will be sticking with our “quality over quantity” approach as long as this remains the case.
Both positions in question can be seen here. Our first position ends almost completely in the black (we enter at $874.435, and exit at $864.45). I don’t think that first entry is textbook, but it’s pretty strong in regards to our usual signals. MACD is a bit weak, but steadily increasing at our moment of entry. Additionally, the TK-cross is strong and both lines slope upwards afterwards. On top of that, the bullish momentum is really strong. I would have taken our initial entry, and I think most traders would agree with me here. It looks like we just got a bit unlucky with that first entry. Unfortunate, but inevitable on some percentage of all trades - regardless of how good they look.
I feel less happy with that second entry. To start with, we’re entering on top of a massive green candle. That’s not necessarily a bad thing, but it means betting the price will keep going up requires much more conviction. Secondly, the MACD is much more questionable here. It’s weaker than it was when we took our initial entry, and hadn’t been consistently positive since then. Neither of these are deal breakers, but together they form an entry that’s much less appealing than our initial position. We lost 0.55% on this entry, and I think that was fairly avoidable. At minimum, I feel confident in saying that fewer traders would have taken the re-entry, compared to the initial position.
Overall, today was quiet and relatively unimpressive for our system. We don’t like to see it, but when all’s said and done, days like this are inevitable. Like all traders, we’re expecting the successful days to outnumber the unsuccessful ones.
That’s all I have for you tonight. Thank you for reading - and happy trading!
