02 Jun Daily Report Card 06022020
My weekly goal
Only take trades when there are at least 4 confluences. Trade location. Market Profile. Price action confirmation. Follow hard entry and exit rules.
Good Pre-market routines
Good Session PECS
Good Trade selection
Okay Trade Execution & Mgmt.
Good Risk Adjusted Returns
Yes Daily review
Muppet meter (1 being best — 5 being worst): 2
Summary: Trend Continuation
- London opened below value and IB traded with a M15 bear engulf at VWAP
- Entry Short 1.35313 SL 1.35560 TP 1.34913
- Reasons for taking the trade: M15 bear engulf, IB range (narrow) extension down, with demand ZOI below. If demand is taken out there is not much congestion in the way to hit TP. I will monitor D TPO for a close within IB to confirm a buying tail in C and failed auction to take position off manually if need be.
- I manually took the trade off at 1.35164 at 0.8R
- Reasons for doing so was because I am in a drawdown and that price had almost reached 1R and I didn’t want to be a d*** for a tick. I failed to respect the min 1R rule here. Another mistake I made was looking at lower timeframes for clues when I should be looking at M30 and higher. When I saw M5 and M15 being ‘extended from VWAP’ I took this as a confirmation that price could reverse at this level. Which obviously is biased because of wanting to take profits. I failed to think clearly and be objective and monitor TPOs. If I had done so I could have noticed the single prints and it would take some ‘work’ to build TPO structure before a possible reversal and thus I could have stayed with the trade a bit longer. Plus I had mentioned before that taking out of the demand we could see a significant move down. I will work on this through practice in monitoring TPO for clues that price is reversing or continuing. Perhaps a time-based rule of a few minutes before I can close off my trade. Grasshopper that I am.
- After we formed a 3 TPO structure at the bottom of the extension we now have a buying tail during F as well and session range is exhausted. Will still need at least one more TPO and price action to confirm a potential reversal setup.
- Since the 4th TPO would close outside of my trading window I decided to not take any trades anymore. There is always tomorrow.
How accurate was my assessment of market context?
- I did well here apart from grasshoppering on the profit-taking
How did I feel before, during, and after the trade?
- I felt good before the trade. Even after being slightly more bullish in my bias due to open being further away from value. But when I saw a M15 bear engulf and consequent IB extension down I decided to go short instead. Trade what is. Not your bias.
- During the trade I felt my inner-grasshopper coming on as pointed out earlier in my summary.
- I define this grasshopper-ness as a narrowed vision only looking at price charts and trying to justify my decision to take profits earlier without actually being objective. In most cases I don’t have to make quick decisions once in a trade and there is no need for this fight or flight behavior.
- After the trade I feel okay. Slightly bummed I could have followed my process better, but that’s in the rear view mirror now. I adjusted my process to consider a closing of position based on a M15 candle close during times of drawdown and I’m looking for that 1R.
How well did I follow my process?
- Could have been slightly better as stated above but I am gaining experience in trading ‘in the wild’ and you have to make decisions in the heat of the moment. Only experience will teach me to get better at it. As always, I’ll be back tomorrow.
How well did I manage my physical, emotional and cognitive states?
- I did well here. I decided to take on something light to eat earlier and then have a meal later in the session so that I am not hungry but also not ‘dumbed’ or slowed down by food.
What did I learn today?
- When in a drawdown and I am aiming for 1R profit-taking I should focus on a M15 candle close before considering to take the trade off. This will allow me to be less of a grasshopper and stay objective on TPO structure being formed combined with price action.
- When it is a high initiative day I have more time to make a decision and it is less likely the market will reverse all of the sudden and I lose my profit. After a high initiative day it is best to look for that 4 TPO structure and price action confirming a reversal before taking the opposite direction. Today this did not happen during my trading window so only 1 trade today.
What’s one thing I need to do more often?
- Let market profile guide and calm me. If I had done that I would have doubled my profit.
What’s one thing I need to do less often?
- Be a grasshopper. I have rules in place to battle this and I have been doing pretty well. Today was not quite a day I did well on this point and thus added another rule to battle this in the future. For the most part I did great today and learned something new.
For my trade plan(s) on this particular day, go here: