Highlighted Trades - 04/24/2024
We saw 13 trades today (9 long, 4 short) on 6 different tickers. Today wasn’t a great day for our system, with only 1 of these tickers coming out positive. Let’s check out the day’s trades, and see how avoidable any of them were.
Our winner of the day was ECL, finishing up 0.07% overall. I like our entry here, but I wouldn’t say I love it. Our green flags are all here, but my reservation is that the chart is a little too choppy throughout the day. There was some money to be made on this trade - especially if you held until EOD, but if you under-allocated this one or ignored it outright, I wouldn’t blame you.
Our biggest loser of the day was on BEN, losing us 0.48% between 2 entries. The overwhelming majority of that loss came from our initial entry, and talk about bad timing. Bearish momentum is building nicely prior to our entry, but immediately afterwards we meet a massive green candle. If I had taken this trade, and seen that, I likely would have exited immediately, still taking a loss, but a smaller one. The only major red flag here is the flat Kijun-Sen line going into this trade. We can see the reason - that the ticker is approaching a support level it previously bounced off of. If you took this trade, you probably acknowledged that you were betting on a breakout - a fairly high risk/high reward move.
Breakout trades aren’t necessarily bad ones, plenty of them work out, but given the clear level with a risk of bouncing off, your probably cut your losses a lot earlier if you took this trade. It’s unfortunate it didn’t work out, but a human trader watching this would have known it was a failure long before it hit our stop.
The last trade I want to discuss is this series of longs on MCK. We lost 0.29% here, but the trading signal was correct overall. We only lost money on this trade because we got prematurely stopped out several times. If you had held until EOD, you would have made a tidy profit instead. While the stock broke through the Tenkan-Sen line a few times, it never did so definitively - each time, barely touching it. Our system doesn’t differentiate between barely breaking the Tenkan-Sen and shooting past it, so it signaled these as early exits. This trade was a loss overall, but only if you followed our system blindly. Looking at it visually, there was opportunity to make money here as well.
It’s unfortunate our system didn’t perform well today, but it’s comforting that most of the losses were easy to avoid, if you were following along.
That’s all I have for you tonight - thank you for reading, and happy trading!
