Trader333
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As this is an advanced forum I am happy to explain in greater detail the reasons behind trades that I have taken. So here goes with the first one:
I only traded the afternoon session today as I attended an evening class but during the afternoon the Dow was up by more that 50 points so that allowed program trading to be initiated.
When the Dow is up, (or down), by 50 points or more the opportunity for pair trading is very much reduced as the market is more likely to trend. So I was looking for an opportunity to go Long and got one at just about 5.30pm on MXIM. But at the same time the Dow, Compx and S&P future were either declining or static. As the indices were doing this I was watching MXIM and noted that it was holding its price while the indices and futures were still in decline so I decided to take a Long position once the Dow MACCI just turned up from its oversold position.
This happened at 6.05pm and although MXIM was slightly above its lower VWAP band there was still nearly 40 points of potential profit in the trade from entry to the target at VWAP.
So I entered a Long position at $54.31 and note that the MACCI on MXIM is also at the oversold position and just turning. The trade lasted until MXIM hit VWAP and I exited at $54.69 for + 38 points.
Charts of the trade are attached:
Paul
I only traded the afternoon session today as I attended an evening class but during the afternoon the Dow was up by more that 50 points so that allowed program trading to be initiated.
When the Dow is up, (or down), by 50 points or more the opportunity for pair trading is very much reduced as the market is more likely to trend. So I was looking for an opportunity to go Long and got one at just about 5.30pm on MXIM. But at the same time the Dow, Compx and S&P future were either declining or static. As the indices were doing this I was watching MXIM and noted that it was holding its price while the indices and futures were still in decline so I decided to take a Long position once the Dow MACCI just turned up from its oversold position.
This happened at 6.05pm and although MXIM was slightly above its lower VWAP band there was still nearly 40 points of potential profit in the trade from entry to the target at VWAP.
So I entered a Long position at $54.31 and note that the MACCI on MXIM is also at the oversold position and just turning. The trade lasted until MXIM hit VWAP and I exited at $54.69 for + 38 points.
Charts of the trade are attached:
Paul