Highlighted Trades - 06/10/2024
We saw 40 unique trades today - 21 long and 19 short - across 28 tickers. Let’s dive right in.
Our biggest win of the day was on DLTR; we made 0.25% between 2 entries. Overall, I think this trade is just okay. The first entry is decent. MACD is strong, the cross is good with downward sloping TK-lines, and momentum is inconsistent, but bearish overall. Our re-entry, however, is highly questionable. By the time we re-enter, the bearish momentum and strength of the MACD have more or less evaporated. Our first entry is passable overall, but I wouldn’t have touched that second entry. I think most traders looking at this chart will agree there. If you traded this way, you could have increased your return a bit, up to 0.30%.
Our big loser for the day was FSLR, losing 1.02% across 3 entries. I think our initial entry conditions, again here, are just okay. MACD is consistent, but relatively small in magnitude, and momentum is inconsistent but not bad. There’s an argument for the re-entries (their short term momentum is at least stronger), but given how close the price action is to the Tenkan-Sen line, it was always fairly likely they would get stopped out early. If you didn’t re-enter here, you capped your losses to 0.44%. The only way to really profit from this trade would have been to ignore the stop-out conditions until around 3 PM EST, which would have taken a lot of skill as a trader. Unfortunately, this looks like a trade that simply didn’t work out.
Lastly, I want to highlight one of our winning long positions from today. This one was on AKAM, where we made 0.15% - nothing huge, but every win is a good win. This is another example of where ignoring stop-out signals can lead to a larger profit, but that inherently means going for a higher-risk, higher-reward strategy, and mostly depends on how firmly you believe in your initial signal. The entry here is pretty strong in my opinion, but this one would have come down to trader discretion. If you just followed the algorithm’s signals, you walked out of here with that 0.15% return.
Overall, today was lackluster for our system. Not every day’s going to be a major success, but we anticipate that in the long run, it’ll perform well. That’s all I have for you tonight. As always, thank you for reading and happy trading!
