Anatomy of a $4,400 Trade. Step by step logic and execution
(This trade was time stamped and posted on
Stocktwits.com- http://stocktwits.com/HarmonyTradingSystem)
on 12/01/2016 starting at 12:43 PM
Central
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Define the Trading
Environment:
OPEC agreed to its first cut in production in eight years,
which led to a surge in prices that started during the Globex session and continued
thru the majority of trading for the day. However, with Prices extended +8%.
Around 11:47 AM central the prices started to shift from bullish to bearish. The
shift in the psychology of the market was detected via the following:
1-Aura cloud measure price psychology shifted between a bull
market to bear market at 11:46:46 AM Central. See Chart1
Entering and
Managing the trade:
2-Captain Short setup was triggered at 12:45 PM Central- The
Captain setup is a consolidation of 4 candles then a breakdown from that average of the 4 candles. Posted a 15
contract short at three prices (51.52/51.45/51.48) between 12:49 pm and 12:54
pm (central). I expected the price to drop quickly from my entry point and that
is the reason I accumulated the 15 contracts so quickly. See Chart 2/Chart 3
Draw Down Worries
3-Prices started to rally into the 51.61. My average cost 51.48
so 13 ticks down on 15 contracts my drawdown was $1950. My Stop for the trade
was at 51.63 which is one tick above the trend line. Needless to say I was a
bit worried. I was getting close to getting stopped out. I was comfortable with
the risk but did not want to take a $2500 stop.
I was patient with it and what helped me stay calm is I kept repeating
to myself just stay calm and focused and breathe….I guess that did the trick.
4-at 1:04 PM central my fortunes were about to change.
Prices hit a wall and started drifting lower. I saw an opportunity to add
another 5 lot short at 51.56. With the Last 5 contracts shot I was all locked
and loaded. My cost average is 51.50 and was looking to see it start paying off
or I may have to consider ditching the idea.
Getting excited prices
finally breaking lower
5- Target # 1 per the Harmony Trading System was 51.40 and I
got out half of my position for +$1100 and reduced my stop to break even + 1
tick. Chart 4
6-With the recent run up in prices it was reasonable to assume that any
legitimate draw down should be deeper. The Harmony Trading System generated a
Target #3 at 51.14 so I pended 9 contracts at that level. See Chart 7/8. I filed the 9 contract at 51.14 and the
trailing stop picked off the last contract at 51.23.
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Chart#1
Chart #2
Chart #3
Chart#4
Chart #5
Chart #6
Chart #7
Chart #8
Chart #9
Part of the conversation
with my followers on stocktwits while the trade is in progress. See my Profiles for more details.
