Highlighted Trades - 05/06/2024
We saw 12 trades on our system today (10 long, 2 short) on 6 unique tickers. Let’s check them out.
Our big winner of the day was XYL. We made 0.29% across 2 entries. Right away, I can say I’m a fan of both entries. Our first one has very steady momentum, a solid MACD, and both TK-lines slope upwards after the cross. Our re-entry has a weaker MACD, but a decent one, in addition to that same momentum in both the short and medium term. As a hard rule, our system won’t take any new trades within 45 minutes of market close, but if you were watching this ticker, and using our system’s signals, you had a chance to take even more profit near market close.
Comparatively, today’s biggest loser has some fairly apparent red flags to it. We lose 0.24% over 3 entries here, but if you were watching this one, it’s unlikely you took either re-entry. I say this because our first entry gets stopped out fairly quickly - within 10 minutes, and then we wait a much longer time (more than 30 minute) to re-enter. By then, the stock had climbed a great deal. The quick initial stop-out, long wait time, and increase in price between entries come together to make it clear: by then, we had missed our chance.
This is one of those red flags that’s fairly difficult to incorporate into an algorithm (these hard rules need exact parameters), but looking at the signals on a chart, with human eyes, it’s immediately obvious. If you only took that first entry, you cut your losses by more than 35%, to 0.15%.
The last trade I want to highlight tonight is this long position we took on ADI, as an example of a strong re-entry. We made 0.10% here, exclusively from the second entry depicted. Normally, the weaker MACD during our re-entry would be a red flag, but this is largely mitigated here. Our re-entry immediately follows a large green candle - a good sign of a resurgence in momentum - which is exactly what we see right after that re-entry. This trade wasn’t a huge winner by any means, but it illustrates that we can’t be too picky with our re-entries. For as many of them are obvious losers, some have solid entry conditions, and present good opportunities to make profit.
That’s all I have for you tonight. As always, thanks for reading and happy trading!
