April 26th, 2017

Pre-Market Simulation Trading

Coming out of yesterday's close the market went pretty much sideways right through the European open trading in a tight range of about 4 points.
The 5:00 am bar on the 30 minute chart gave me a buy signal and the 10,000 tick chart was looking promising for a breakout, so I took a long trade.
However, when the 10,000 tick chart closed it did not confirm the trade.
I decided to stay with the trade and see what happened.
The market moved down from my entry and the 6:00 am bar gave me a sell signal right near support, another bad place to be entering.
But, once you start the cycle it is hard to get out of so I took the short signal and added contracts to cover the previous loss.
There was still some room to the support level as well.
The market cooperated, took me out on the 1 point target and 1 recovered my previous loss plus a small profit 0f $20.00
The 6:30 bar gave me another short signal, which I will not take because we are right on the support level. I will wait for more confirmation that the market is ready to break out of the range.
Nothing else happened in the pre-market.

Open Trade Real Account
The market was very  in a tight trading range and looked to be set up nicely for the short trade on the open. Red bar on the 30 minute chart coming down off resistance.
Went short 2 on the open, but the market never came to either of my targets.
Got close on the one pointer.
The market moved up and broke through the overnight resistance level giving me a long signal which I took and reversed my short trade.
But, I messed up on the number of contracts and only took 3 on the reversal meaning I need 2 points on this trade to cover my losses and make a profit. This could be a problem as normally I would only go for 1 point.
The market moved up and easily gave me 1 point. Then pulled back.
I adjusted my target to 1.75 point and that got hit on the next rally.
Profit for the day $50.00
So, what did we learn.
Have to pay more attention to the details.
The calculations for reversal need indicate the number of contracts more clearly.


Back to the simulation.

Just before 10:00 am the market made a move, broke through the previous days high and continued moving higher.
I caught some good trades using the 30 minute naked close entries as well as continuation trades on the 10,000 tick and the 2,000 tick for pullbacks and re-entries in the direction of the trend.
Then the market went a little crazy and could not decide which way it wanted to go with some big swings between resistance at the historic highs and the morning breakout.
A fast moving volatile market like this with no real direction can be difficult to trade.
I got whipped back and forth a couple of times, but ended up coming out with a $440 profit at the end of the day.







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