Highlighted Trades - 06/04/2024
We saw 44 trades today (25 long, 19 short) across 31 unique tickers. This more than twice what we saw yesterday, but it’s more in-line with our expected trades per day on this system. Let’s check them out.
Our best performing trade today was a long position on DUK, netting a 0.55% return. The entry conditions are solid, but the main reason I want to highlight this trade is that it benefits from our updated stop loss system. In back tests, we don’t exit a trade if the price dips below the Tenkan-Sen line. Rather, we exit if it dips below the Tenkan-Sen line’s value from the previous candle, or closes below the current value. We can see this here on the 13:25 candle. Despite the candle going below the Tenkan-Sen at the time, the algorithm does not exit the position. This is because, on the 13:20 candle, the Tenkan-Sen value is roughly 15 cents lower. This is the value the algorithm is comparing the price to, and this was a bug in previous versions of the algorithm. If not for this fix, the system would have exited here for a slight gain, rather than the major win it found instead.
Our biggest loser of the day was a series of longs on PGR, losing us 0.33% across 3 entries. There were a few different ways to play this one, and some opportunities to turn a profit. Had you gotten in and held until the TK-lines crossed back, you’d be sitting on a positive return right now. Unfortunately, that’s not the exit strategy our system uses, and even the more forgiving stop loss system wasn’t enough to save this trade. I likely would have refused the 3rd entry, but by then you’d already have a loss of 0.25%. I don’t think any of these entries are egregiously bad, or have any major red flags. This was a trade that just didn’t work out under our method.
The last trade I want to highlight is this short position on PEG, returning 0.42%. Right away, I’m a big fan of this trade. The entry is virtually textbook; MACD is perfect, momentum is very strong, the cross is gorgeous, and we broke a low level established during open. If you were watching the system this morning and saw this alert, you probably didn’t have much reason not to take it. Seeing entry conditions like this, I would get in every time.
That’s all I have for you tonight. As always, thank you for reading and happy trading!
