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BIPTJ Challenge Day #2

BIPTJ Challenge Day #2
Trading @ the open
Trading late morning

Performance Summary:

  • +329 ticks
  • 30% W
  • RaWaL: 6.32
  • PF 2.81

Notes from today:

#1) Enter early, cover aggressively at the open.

I know many traders swear by skipping the open and only starting their trading day 30-60 minutes into the session.

I get the logic, but for whatever reason I feel a little more comfortable with strong momentum - you've just got to assume everything is a trap.

I did that really well here and ended up with a pretty even split of wins and losses in this stretch and was up around $1100 for the session.

#2) Don't give back too much.

So, I got way too excited about a second trade idea that developed later in the day.

Short version: I saw price fail to move much higher after breaking out + up, and then drop back into the premarket range with some conviction.

I wanted to get in on what I expected to be a big move short, but I'm not a great pullback trader.

I ended up getting trapped over and over and over and gave back about 70-80% of the day's gains.

No bueno.

The trade DID eventually work out and I nailed the one time it worked out. But to be totally honest, today would have probably been healthier if I had just stopped with the morning session.

I'm making note of this here because a good result (finished up $1500+) can mask bad behavior (overtrading in this case).

That sorta thing has a way of digging into my brain, rationalizing itself, and then rearing its ugly head later - the next day, week, etc.

I'll be adding a new rule to my plan based on this slip today - don't give back more than 50% of a session's gains. Like a high watermark, I suppose.

Closer look at today's trades:

The open session was solid.

I entered on the usual scoops, covered at preset levels (the premarket high, mostly).

I think it's worth looking at the rough patch (about 8 losing trades in a row) and the strong trade management on my last trade.

Here's what I was looking at:

#1 This move got my ears perked up. Just needed to find a good push up and fail to enter short.

#2 The first logical place was the daily pivot (the yellow line).

#3 But...price didn't turn. It kept grinding up, popping down, and trapping aggressive late bears like me. We spent about 30 minutes floating between the pivot and the premarket high (the next logical turning point.  

#4 Finally, price turns for good. Notice the really screwy final fakey (3rd candle from the right, below).

#5 .....and there we go!

Here's what the whole thing looked like on the 1m:

This was on the Topstep Combine, so I was only allowed 2 contracts (yesterday I traded in 3 parts, on my personal account).

But, check out how much better the winning trade's management was than yesterday's big trade.

Exit #1 Target: Low of session (red dotted line).
Exit #1 Reality: Bing bang boom, perfect.

Exit #2 Target: Tight trail stop using 1m, 200 tick chart, and watching the action every time a swing low was tested.
Exit #2 Reality: Again, followed the plan exactly. Worked well and felt great.

(Had there been a 3rd part, the plan would have been to just hold it until the premarket low was properly tested).

OODA Loop

Last Goal: Use a resting stop order and manually trail the second part of the trade.

Did I meet the goal today: YES!

Today's Strength: Just covered at my preset levels. Wasn't overly greedy or trying to push it - just covered and moved on.

Today's Weakness: Overtraded and gave back a lot of my profits before later making up for the drawdown. Overtrading was a consequence of not having a clear plan for my bigger picture pullback setups.

Tomorrow's Goal: Limit to no more than 5 trades.

Here's what the Topstep Dashboard looks like:

Topstep

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