Lesson 4 out 12-$875 Profit-Harmony System-DAX Market

How to Identify Choppy Price action In Crude Oil using the Harmony System

$360 Profit-Harmony System- Crude Oil- Short 2 contracts

Harmony System-Long-Nasdaq 100 futures-1 trade $260

Trip to Oklahoma Oil Well...they turn them on only few hours a day... State law I guess. Black Gold at the source.

Step by Step- Crude Oil-Anatomy of a Holistic Trade in a Live market netting $2470 in 15 minutes and $4500 for the day.

In the past few days with volatility of Crude oil picking up it was  just a matter of time before we see some parabolic  moves  in that markets. Prices trading just below 55  signals the near term bottom with risk of dramatic short covering against the bears. This trade was the 9th sequence for the day . Out of 9 signals I executed  7 trades long and 2 shorts. That told me the market is decisively  bullish. With short term trend and the long term trend Intraday in alignment. I started to look for triggers to get into another profitable trade for the day. The signal arrived at 10:42:45 am central  with price immediately pulling back. To some trades that can be a sign of trouble. However, I had two things working for me.

1-Market in Harmony.
2-Protective Zone around 56.41.
3-My stop was 20 ticks from entry due to market Volatility.Also, 20 ticks is the most productive stop amount per my Tick/Stop analysis study. That study shows me 82% profitable trades with 20 ticks and 57% if I use 10 ticks.

Now its just a function of  harvesting the profits so what are the rules.

1st target typically is 10 ticks. However, due to market volatility I increased  that  amount to 30 ticks to take advantage of the wild swings. I executed the first target at 56.96 for 30 tick profit. Now I am moving my stop to break even +2 and this trade is free of risk.

Now.. Price started to pick up steam in a very unusual way. levels started to disappear at a rapid pace and I knew I got myself a runner I need to maximize. As a rule for my second contract I do not have a target price to exit.  I only use a trailing stop so I can take advantage of unexpected  parabolic moves. That rule kept me in this trade.  I trailed price by 2 candles or 5 ticks below  the transition line and that kept me in the trade all the way till 58.81 for 214 ticks on last contract.

Trading by the rules generated a harmony trade resulting in a $2450 profit  in 15 minutes. and over $4500 trading 2 contracts for the day.
 This trade was posted live in Stocktwits: http://stocktwits.com/HolisticTraderAcademy

Let me know if you have any questions

Wish you Health,Wealth and Happiness .

Regards,
Holistic Trader
George Habash.

How to emotionally manage an expense ( losing) Day- Trading Crude Oil.

Lets agree on one thing if been a professional trader is a an easy profession, You would have everyone doing it and making millions in their pajamas. Some days you are the hammer and other days you are the nail. Today I had an expense day and would like to discuss some of the factors that lead to the performance.

Out of 15 trades made today  2 of them were actually a signal and 13 are non-signal. The net result with commission- $-230. Now the amount of expense money not bad at all but what bothers me is trading outside my system.

Some of the highlights of today

1- Felt tired and distracted and overall run down- coming down with the a stomach bug.
2- Market  did not generate any signals during the morning session. I got restless and took sub par set ups. lead to a quick 2 stop outs.
3- I got stubborn and continued to take sub par set ups and the losses accumulated to $-630.
4- I took a break came back and looked for premium harmony trades and cut my losses to only -$230.



Lessons learned today:

A-The result of one day or one week does not matter. AS LONG AS you are following your system.
B-My edge leads to profits  over time so be patient. If one day the markets is not providing any signals do not compromise  and take Sub standard setups. ONLY TAKE harmony trades.
C-Do not look at your P/L as this will lead you to act emotionally to the market.

What will I do next trading session:

1-Focus on  making the next 10 trades a well managed  Harmony Trades.
2-At the end of the 10 trades  reward myself .Reward will be determined later.
3-Work out and meditate to reduce stress .