Highlighted Trades - 06/12/2024
Today’s report is an unfortunate one. Due to a bug with our system’s Discord communication, our algorithm stopped running at roughly 9:05 AM CST today, and was not able to send out any notifications. I want to offer a sincere apology to all of our users for this inconvenience. This is not a bug that appeared at any time during our testing, but I have rolled out a fix - this shouldn’t happen again. In the interest of thoroughness, I will still be reviewing today’s trades. However, these trades will be ones the algorithm would have made, as determined by a back test.
We would have seen 30 trades today - 18 long and 12 short - across 23 unique tickers.
The best trade we would have seen today was this long on PANW. We would have made 0.51% here between 2 entries. Overall, I’m a fan of both, but they have their own red flags. In the first entry, the Kijun-Sen line slopes downwards at our moment of entry, which can be a sign of momentum being rejected. It’s caused by our daily high occurring just over 26 candles before our entry. Bullish momentum is also present, but not as consistent as it could be. The Tenkan-Sen slopes upwards nicely, which is a plus for this trade. On our second entry, momentum and MACD are both significantly weaker. Again, there were plenty of reasons to like this one, but it definitely would have been more of a gamble. Overall, these were 2 solid winners with respectable green flags going for both. It’s a shame these didn’t get alerted today.
On the bright side, we didn’t signal our biggest loser of the day: STLD, costing us 0.74% between 3 entries. On the bright side, I think the red flags here make these trades all easy to avoid. For one thing, the initial cross is fairly weak. That’s difficult to determine algorithmically, but as a trader looking at the chart, it’s a pretty obvious red flag. There’s some argument for the following 2 entries, but momentum is never great, and MACD is really inconsistent here. It’s unfortunate that the algorithm would have alerted these, but given the charted issues, I feel good saying that almost no one would have taken it anyways.
The last trade I want to discuss tonight is this long on CRL - returning 0.16%. This one’s interesting because the momentum going into it is so unusual. The momentum is clearly upwards going into it, but 5 of the last 6 candles are red at our moment of entry. Above all else, this signals chop in the chart, and looking at its history going into this trade, we can indeed see a good amount of chop between candles. This trade ended up profitable, and much more so if you were more lenient with stop losses, but owing to the chop here, I still think I wouldn’t have taken it.
That’s all I have for you tonight. Once again, I apologize for the issues with our algorithm today. A fix has been put in place to prevent any future instances of this. As always, thank you for reading and happy trading!
