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Dummy day trading #35 16-Oct-2006: NQ Long trade closed

by 6 Comments

Long position of NQ was established above high of 6th bar. I scratched the trade when it closed below 5 an 8 MA. One trade closed with -0.66 R loss.

Trade Grade:

Trade score: 4: Out at a different price from stop, but a losing trade

Execution score: 2: Followed trade entry, but closed out position before predetermined target was hit 5: Impulsive

[photopress:NQ_15_fib_trade_close_1.jpg,full,pp_image]

  • Is the trend up or down? Would you be looking to get long or short this futures contract? Trend is up. Looking to get Long
  • Where would you get long/short this futures contract ? Above high of 6th bar which was above Opening Range and 8-MA. Hindsight, this is not a good entry, and I was lack of patience and broke the rule-entry bar should be a up bar.
  • Where would you put the initial protective stop? Below the low of entry bar
  • Where would you exit the position? Fib extension level 38.2% and 61.8%

Grading my trade and myself

by 4 Comments

I have been thinking of grading my trades and execution. There are indeed some bloggers grading their trades. Trader-x grading his trade setup with alphabets (A, A+…etc), J.C from NYSE scalper’s tales grading his daily trades as well:

I’m going to re-define what I consider a good trade and a bad trade. Since I’m not doing 8000 and 10,000 share positions as often any more, I’ll consider a good trade anything that makes $150 or more and a bad trade anything that loses $100 or more.

I find it to be useful by grading my trades and trade execution. It gives me an insight of my trading performance from another aspect in addition to expectancy and accuracy.

Here is my grading plan. This is to be done separately on each type of trade setup. Basically, I am applying the ideas introduced by John Carter in Mastering the trade.

  • 1: Target hit
  • 2: Out at a differrent price from target, but profitable (time stop)
  • 3: Out at even (scratch, time stop)
  • 4: Out at a different price from stop, but a losing trade
  • 5: Stop hit

The following scale is to grade how well I actually executed the trade:

  • 1: Followed trade as dictated in my plan
  • 2: Followed trade entry, but closed out position before predetermined target was hit
  • 3: Followed trade entry, but removed stop and let position run past original target
  • 4: Entered setup late and didn’t set target
  • 5: Impulse trade

Add up daily scores and divide by the total number of trades to get an average for both categories. This will keep a grade point average of the number of trades you made that are profitable and those that are executed as originally planned. Track by trading method used, so you are able to rate each method and tweak as needed. Review the score at end of each month to see what needs to be modified.

I am particularly interested in looking at the second category which is a psychological challege. It is easy to have some buy/sell signals, but, to follow the plan, trust myself, trust my plan and methodology and reduce number of impulsive trades are challeges traders face everyday. I have the tendency to exit a trade prematurely, This grading plan will always warn me to “behave myself”.

This is just another way to improve my trading.

October 2006 : Week 2 review

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Dear diary

Before I leave home for coffee and movie “The Departed”, here is my result of the week.

The trade on Friday, the 13th, it turns my weekly result from red to break even. Only 3 trades were made this week. Two losers with 1-R loss each and one winner with 2-R gain.

Nothing much to write about for this result. At least, I managed to close the week in black. I am looking forward a better trading week.

Dummy day trading #34 13-Oct-2006: NQ Long trade closed

by 1 Comment

Long position of NQ was established above 9th bar high. I closed that position at 17th bar, with 2.09-R gain (+6.5 points in NQ). I closed the position at Fib extension 38.2% as it is 2am in Singapore.
That’s a better way to end the week.

Trade score :1 – Target hit

Execution score: 1 – Followed trade as dictated in my plan

13 Oct 2006
13 Oct 2006
  • Is the trend up or down? Would you be looking to get long or short this futures contract? Trend is up. Looking to get Long
  • Where would you get long/short this futures contract ? Above high of 9th bar which is a narrow range bar, above opening range and moving average.
  • Where would you put the initial protective stop? Below the low of entry bar
  • Where would you exit the position? Fib extension 38.2%

Trades that Got away 12-Oct-2006

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I have couple of trades that got away today. The market ran away without me. Dummy setups appeared in both 15-min and 30-min charts. So, I think it does not make sense to complain about trading time frame. A setup is a setup. Dummy is still dummy.

NQ 15s’

[photopress:got_away_NQ.jpg,full,pp_image]
  • Is the trend up or down? Would you be looking to get long or short this futures contract? Trend is up. Looking to get Long
  • Where would you get long/short this futures contract ? 2 spots were found. Above high of 18th bar or above high of 22nd bar which both are above Opening Range.
  • Where would you put the initial protective stop? Below the low of entry bar
  • Where would you exit the position? Fib extension 38.2% and 61.8%

NQ 30s’

[photopress:got_away_NQ_30s.jpg,full,pp_image]
  • Is the trend up or down? Would you be looking to get long or short this futures contract? Trend is up. Looking to get Long
  • Where would you get long/short this futures contract ? Above high of 9th bar which is above Opening Range
  • Where would you put the initial protective stop? Below the low of entry bar
  • Where would you exit the position? Fib extension 38.2% and 61.8%

YM 15s’

[photopress:got_away_YM.jpg,full,pp_image]
  • Is the trend up or down? Would you be looking to get long or short this futures contract? Trend is up. Looking to get Long
  • Where would you get long/short this futures contract ? Above 7th bar high, which is above Opening Range and supported by moving average
  • Where would you put the initial protective stop? Below the low of entry bar
  • Where would you exit the position? Fib extension 38.2% and 61.8%

YM 30s’

[photopress:got_way_YM_30s.jpg,full,pp_image]
  • Is the trend up or down? Would you be looking to get long or short this futures contract? Trend is up. Looking to get Long
  • Where would you get long/short this futures contract ? Above 9th bar high, which is above Opening Range and moving average
  • Where would you put the initial protective stop? Below the low of entry bar
  • Where would you exit the position? Fib extension 38.2% and 61.8%

ER2 15s’

[photopress:got_away_ER2_15s.jpg,full,pp_image]
  • Is the trend up or down? Would you be looking to get long or short this futures contract? Trend is up. Looking to get Long
  • Where would you get long/short this futures contract ? Two possible spots. Above 18th bar high or above 22nd bar high. Both are above Opening Range and supported by moving average
  • Where would you put the initial protective stop? below the low of entry bar
  • Where would you exit the position? Fib extension 61.8%

Dummy day trading #33 12-Oct-2006: YM Long trade closed

by 2 Comments

Dear diary,

Long position of YM was established above high of 4th bar. However, I was stopped out. One trade closed with 1-R loss.

I will stop trading for the day and continue writing my business plan.

[photopress:YMZ06_15_trade_closed_1.jpg,full,pp_image]

  • Is the trend up or down? Would you be looking to get long or short this futures contract? Trend is up. Looking to get Long
  • Where would you get long/short this futures contract ? Above the high of 4th bar which is above Opening Range (OR) as well.
  • Where would you put the initial protective stop? Below the low of 4th bar which is below 5-MA as well
  • When would you stop trading for the day? After position is established
  • Where would you exit the position? Fib extension 38.2% and 61.8%