Todays trade and Lesson
Today was a good day for trading - but I also have my concerns about what I'm doing.
Firstly to the trades - Last night on the 3 hour chart a signal was generated for a SELL trade, as I am not awake (even remotely) at that time, I took an entry point at 9am this morning at 10,481/86 (out of hours the spread is 5 points). My target was the MA at 3am (the bollingers were quite wide, so did not anticipate enough movement to go right across to the other bollinger line - the MA was at 10,425/29. This was hit (only just) at 3.15pm - but that is all that matters. This turned out to be an excellent trade (if I say so myself) netting 52 points.
The chart below illustrates this. The chart on the left is the 3 hour chart and the chart on the right is the 15 minute chart.
The 15 minute chart shows two other good trades, but I am concerned here that I am starting to look at this on smaller and smaller time frames. (Break here to go home - will finish this at just after 6pm) Ok, back now. Yes, the time frames - this is starting to worry me as the whole point of this strategy was supposed to be a set and leave one - to enable me to set the trade - leave it - and come back to take the profits later. It wasn't supposed to be one about sitting over the pc, watching the charts all afternoon and evening. Perhaps it's because I have the time at the moment to do this, so the shorter time frames are presenting opportunities for smaller trades.
In any case the trade this afternoon on the 15 minute chart was another pofitable one. As you will see on the above chart the priceline moved outside the bollinger at 2.30pm, it didn't start to make any move back in until 3.30pm and this was confirmed at the close of that candle. So the BUY trade was entered at 3.45pm at 10,429/33. The target was set as the opposite bollinger at 10,499/503 I was actually willing to take profits at 10,484/88 - which was the level of the Dow at 2.30pm when it opened, but in fact I made the higher level, but did keep the trailing stop in there this time, just to make sure. The Stochastic on the 15 min chart at the time the trade was entered was low and there was room for upward movement, but the stochastic on the 3hour chart was already very high - which signalled my caution.
As it was I think I was lucky to take this trade with a 66 point profit. For the day that makes me +118 points. Which is definitely one of my better days.
There is another trade showing on the 15 min charts which is where the following candle opened outside the bollinger, but the price line was still inside. The trade would have been SELL at 10,506/10 with a target of the MA (around the 50% retracement and seems to work well) of 10,464/68, which would have given a 38 point profit. I didn't trade this - but it just shows what can be done.
Perhaps what I have here is one method that I can utilise in different ways. If I want to sit in front of the computer and swing trade a little I can do. Equally if I have better things to do that day, I can trade based on a 3 or 4 hour chart. Horses for courses, I believe is the saying.
Well this has been a bit of a long post in the journal. Hope it wasn't too boring.
A good strategy needs refining over time so I hope this small tweak in yours improves your succes rate.
