Hi all,
Yet another sharp opening run for the DAX this morning but the value of our common sense filter to avoid runaway moves on the mechanical reversal entry (see post #289) proves its worth and we are able to take a profit out of the trading:
The DAX runs up sharply from the 8am open and twice breaks through prior highs and continuing strongly without closing a bar back inside the prior high, so not triggering a trade thanks to our entry filter. On the third new high of the day around the 13520 level it does fall back and we are duly short at 16. We survive a further run at the 20 level and are rewarded with a sharp move down, allowing us a nice +14pt profit at 02, exiting before possible support at the big figure 13500 level.
So a profitable day but only because of the entry filter applied. It is only a simple common sense condition applied to the mechanical entry to avoid just the obviously poor entries but look at the rewards. Illustration that some basic observation and thought applied to our trading can reap significant dividends.
The long week of trading this reversal method from last Thursday now shows a solid net profit so tomorrow will be a return to my customary Friday off live trading as reward for a profitable week. Instead, tomorrow I will reflect a little on how this whole mechanical entry method is working for me.
YTD summary:
6 days, 15 trades, 9 winners for +101pts, 6 losers/scratches for -40pts
Net +61pts, +6.1% uncompounded account return at 1% risk level
Yet another sharp opening run for the DAX this morning but the value of our common sense filter to avoid runaway moves on the mechanical reversal entry (see post #289) proves its worth and we are able to take a profit out of the trading:
The DAX runs up sharply from the 8am open and twice breaks through prior highs and continuing strongly without closing a bar back inside the prior high, so not triggering a trade thanks to our entry filter. On the third new high of the day around the 13520 level it does fall back and we are duly short at 16. We survive a further run at the 20 level and are rewarded with a sharp move down, allowing us a nice +14pt profit at 02, exiting before possible support at the big figure 13500 level.
So a profitable day but only because of the entry filter applied. It is only a simple common sense condition applied to the mechanical entry to avoid just the obviously poor entries but look at the rewards. Illustration that some basic observation and thought applied to our trading can reap significant dividends.
The long week of trading this reversal method from last Thursday now shows a solid net profit so tomorrow will be a return to my customary Friday off live trading as reward for a profitable week. Instead, tomorrow I will reflect a little on how this whole mechanical entry method is working for me.
YTD summary:
6 days, 15 trades, 9 winners for +101pts, 6 losers/scratches for -40pts
Net +61pts, +6.1% uncompounded account return at 1% risk level
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