Highlighted Trades - 06/26/2024
We saw 39 trades today - 16 long and 23 short - across 29 unique tickers. Let’s check them out.
Our big winner today was ALB - we made 0.62% from our 1 entry. Our entry conditions on this are very strong. Momentum is consistent, with MACD (for the most part) steadily increasing). The cross is also fairly ideal. Not only is it a strong cross, with neither line sticking together, but they both slope strongly upwards. I definitely would have taken this one. As a rule, the algorithm doesn’t trade after hours or pre-market, but if you’re interested in after hours positions, there were a few opportunities later in the evening to make a little more profit.
Our big loser for today is TER, losing a comparatively minor 0.24%. The only real red flag I have with this trade is the flat Kijun-Sen line, which correctly warns us that this play requires a breakout to work. That said, the $146 level was established during pre-market hours, which makes it significantly weaker than a normally established level. Momentum and MACD could both be stronger, but overall they’re both pretty good for the position here. Despite the breakout requirement, I would have taken this - the risk/reward is overall not bad at all. This is a position that just didn’t work out for us. Unfortunate, but that’s just the nature of markets. No matter how much you like your setup, any trade can become a loser.
The last trade I want to highlight today is this pair of longs on CTVA - returning 0.30% between them. Our first stop-out is pretty interesting here, in that it happened entirely because the ticker saw abnormally long wicks for about 15 minutes. There’s an argument to ignore this stop-out altogether, and just keep holding. This period in the chart shows higher volatility, but no real downwards momentum. Personally, I wouldn’t have done this - I try to be as consistent as possible with my risk management strategies. But at the same time, this goes to show how the algorithm is never the end-all be-all of trading signals. If you know your stuff and believe in your strategies, you can turn a lot of losing algorithm trades into winners, and a lot of winners into bigger winners. As a reminder, this isn’t financial advice. We would never recommend you take a trade without doing your own due diligence and coming to your own conclusions; never take a trade unless you personally believe in it.
That’s all I have for you tonight. As always, thank you for reading and happy trading!
