August 12th, Weekly Summary - Real Money Account Profit $2,897 / Sim Account Profit $2,451
The Week in Review
The big news this week is that we got out of the short position with a profit.
Monday was more or less uneventful with the market challenging resistance levels and closing slightly higher.
Tuesday had a strong rally making new historic highs, but the market could not hold the gains and closed lower.
Wednesday was a mirror image of Tuesday bringing a degree of uncertainty back into the market direction.
Thursday President Trump made his comments on North Korea and it was the catalyst the market needed to make a decisive move to the downside.
Friday was a typical day after with a small rally and a higher close.
The move lower on Thursday put us into a profit position on our short trade and gave us the opportunity to close out this position for a profit.
The question now is where does the market go from here?
Real Money Account
We ended the week flat having closed out our short position on Friday for a profit of $2,897
The big drop on Thursday put us into a profit range.
I watched the market closely Friday morning expecting a rally in reaction to Thursdays be decline.
Initially it looked like we may have a continuation to the downside, but that did not materialize and I closed out the position.
Closing out the open position is the first step to getting us back on track.
The next step is to get back to our daily trading next week and making our daily targets.
Next week we will be looking for $350 per day.
We closed out 1 bond trade this week for a profit of $435.
We are currently holding 1 long position @ 155 16/32 from 11/08/17.
This position currently at break even
Stop is @ 153 28/32
1st exit day is 15/08/17
S&P 500 E-mini Sim Account
I started using a modified Flipping Technique this week
Flip Trade Rule (Modified 07/08/17)
When Flipping trades we flip immediately to 5 contracts.
The target for the flip trade will be the recovery of the previous trades losses.
Profit is secondary to recovery of losses and getting flat.
This will apply to apply to all trades that do not follow through.
For the week we ended with a profit of $2,451
It appears like this technique is working better than the previous strategy.
We have not yet had a serious drawdown using this technique or a losing day.
We will continue to test.
With this strategy we automatically take 5 offset contracts on any trade that does not follow through, but instead of looking for a 1 point target on the recovery contracts we will set the target to recover the losses only.
For example;
1st trade is entered with 1 contract, it does not follow through.
We flip the position with 6 contracts, 1 to cover the open position and 5 for recovery.
If we lose 2 points, $100, on the first trade we set the target at 1/2 point which will give us a profit of $125 on the trade if hit.
If this position does not follow through we then flip with 10 contracts, 5 to cover the open position and 5 for recovery.
We will set the target at the required number of point to recover the losses.
The Achilles heal of this strategy is that the targets will increase with the number of losses in a row that we have and become more difficult to achieve.
So far in our testing we have not run into this problem.
We will continue to test this strategy.
Sim Account Chart
The flipping strategy used in the last 2 weeks has created a shallower and more choppy equity growth curve.
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