Early Morning Range Breakouts using time and sales

Stopped out @ 39.68

QSII Short 1000 @ 30.08
Stop @ 30.20
Carefull with 30 level

Indeed stopped out

QSII Short 1000 @ 30.03
stop @ 30.14

Out @ 28.68

Bailed out @ 30.03

Daysummary









Friday afternoon, difficult to trade early morning breakouts.

I have widen up my proscreener filter a little bit, so lower ATR stocks are available too.

CRZO went slowly but steadily lower. I did stay a little longer than I should have (break of ema).

PCAR were a bad trade.

QSII caught me, next time I surely wait until the 30 level has broken. I was anticipating instead of looking at the chart/time and sales.

Summary with money management applied

I was wondering if I am making money trading this system even with commisions.
In practice I should use a money management strategy, ie a fixed risk per trade.

I have worked this out in a spreadsheet.



The commisions structure of my broker is $ 0.02 ct / share, with a minimum of $ 15. Thus a minimum of $ 30 per round trip (not a very cheap one).

My net loss after commisions is $ -156.

If I change the max risk per trade to $ 200, my net profit goes to $ 369.



The commisions are eating up all of the profit and should be considered while trading.

Conclusion: the system is profitable but only by trading of a minimum of $200 fixed risk per trade. Of course If I learn to trade better, then the minium could be lowered. Finding a cheaper broker could help to a fair bit.