Highlighted Trades - 06/13/2024
We’re coming off of a relatively quiet day - only 26 trades. We had 5 long and 21 short across 16 tickers. Let’s check them out.
Overall, we didn’t have any major winners today. Our best performing ticker is O, where we only made 0.09%. I don’t think there’s anything wrong with this entry. The cross is solid, with both TK-lines sloping up right after. Combine that with strong, albeit not ideal MACD and relatively consistent momentum, and you’ve got a pretty appealing entry. Frankly, I would have taken this one. It looks like this trade just didn’t work out for us. It’s unfortunate, but no matter how appealing the entry, not every trade can be a winner.
Comparatively, our biggest loser today was much more substantial, but also much more avoidable. We lost 1.02% on BLDR across 3 entries, but it’s much more obvious these are losing trades. For one thing, after our first entry the momentum turns wildly inconsistent. In addition, after our first stop-out, the price action rides the Tenkan-Sen line very closely, making it highly likely for any re-entries to be stopped out almost immediately - which is exactly what happens here. I think it’s pretty understandable if you took the initial entry - momentum is great and the cross is almost perfect - but I feel confident in saying most traders would have disregarded both re-entries. It’s unfortunate this got signaled, but at least it was partly avoidable.
I want to highlight this trade on CZR as well, for largely the same reasons. We lost 0.42% between 2 entries, but similarly I think there’s a solid argument (though not an ideal one) for the first entry, but not the second. MACD is red for the first time since early in the morning, and short term momentum is solid during our first entry, though longer term momentum is pretty lacking. It’s also approaching a previously rejected support level. If you wanted to take this as a breakout play, there was a good argument to do so here. Once that breakout was rejected, however, it becomes much more questionable to take the re-entry, hoping for the same breakout - a breakout which had been rejected not 30 minutes earlier. At the end of the day, our algorithm still signaled a losing move here, but if you were trading this live, it’s unlikely you felt the whole of it.
Today was a pretty sub-standard day for our system. We didn’t see any of the major wins that offset the inevitable losing trades. Not every day can be a success though, and we remain optimistic about long term potential. I hope to deliver better news in the future.
That’s all I have for you tonight. As always, thank you for reading and happy trading!
