Highlighted Trades - 06/03/2024
We rolled out our new version of the algorithm today, and thus far things are going well with it. We saw 16 trades today (10 long, 6 short) across 15 unique tickers. This was actually a relatively quiet day for it - we’re expecting around 40 trades per day on average. Regardless, let’s check some of them out.
Our biggest winner of the day was this long position on IP. We got in at $45.22, and exited at $45.71 for a 1.08% return. I want to make a disclaimer here that, due to a database issue, we weren’t able to send exit notifications during the last ~10 minutes of the trading day today. As such, we’re using the algorithm’s last recorded stop loss here as the exit point. We feel this is a conservative estimate, since looking at the chart, the stop loss should have been brought higher prior to our entry.
Overall, I’m a big fan of this trade. The cross, on paper, isn’t the strongest, but given that it’s combined with both TK-lines sloping sharply upwards, and the massive green candle preceding, I think that offsets this very nicely. Combine that with a strong MACD and an obvious breakout, and we’ve got a winning formula. There was little reason not to take this one.
Our biggest loser of the day was this long position on HPE, losing us 0.22%. I don’t think the entry here has any major red flags. The MACD is very strong, as is the momentum during our entry. The cross is solid as well. The only red flag here is that, during our entry, the stock is testing a previous resistance level, meaning that if you took this, you were betting on a breakout play. There’s a solid argument that a bullish breakout on a red candle is generally a bad bet to make - if you refused this trade for that reason, it was an understandable choice.
Lastly, I’d like to discuss our best short of the day. This was on HES, and made us 0.32%. The price action looks relatively flat at a glance, but ignoring the major negative wick on the 10:25 EST candle, it’s clear that it has solid downward momentum throughout the day. MACD isn’t the strongest here, which is somewhat of a red flag, but this trade is a much slower move, so the relatively weak MACD makes sense. The TK-cross is strong, but it’s spurred almost entirely by that one massive wick. This trade turned out to be a winner primarily because it was a longer term momentum play. If you saw the cross and the wick and thought this one was a fake-out, it was understandable. I like the entry conditions overall, but they aren’t perfect here.
That’s all I have for you tonight. Thank you for reading - and happy trading!
