11 May How did I trade today? 20210511
Summary: Make a plan. Visualize price action and orderflow. Then act if confirmed.
#fintwit #orderflow #daytrading #dailyreportcard #tradinglifestyle #daytraderlife #grasshoppersanonymous #tradingforex #tradingcommodities #NEXT
Every trading day I recap my trades, including more than entries and exits. Why did I take the trade? How did I manage the trade, my emotions and cognitive function? All the good stuff as well as all the ugly of being a day trader. As always, feel free to reach out to me.
My weekly goal:
- Min. 3 times hitting the gym + mandatory cardio
- Trading rules
- M15/M30 entries and exits at 1st DTTZ, M5 entries and exits at 2nd DTTZ
- Only price-action based exit rules (or if hit time stop comes earlier)
- Otherwise a Bart Simpson exercise
- Doing one right now. Today is the last day.
Good Pre-market routines
Good Session PECS
Good Trade selection
Good Trade sizing or SL placement
Good Trade Execution & Mgmt.
Good Risk Adjusted Returns
Yes Daily review
Muppet meter (1 being best — 5 being worst): 1
- 1st DTTZ
- C closed as an Evening Star extending below IB, didn’t like the long move plus with underlying LTF demand and trading within H4 demand I hope for a pullback before a continuation. Thus: Sell Limit Order at 1.94300 SL 1.94600 TP 1.93700.
- Price moved lower taking out LTF/H4 demand
- Put the Sell Limit Order at IB low 1.94230 in case of a low/medium initiative activity day and reaction off popping H4 demand makes price pullback to it.
- Late-sustained auction entry triggered at close of D (closing as a Hammer below IB. Even though M15 closed as a Bull Engulf (on the hour) I think it can be negated due to the popping of H4 demand.
- E closed as a slight M30 DBD
- I took the trade off at 0.8R as this coincided with almost taking out newly formed LTF demand (coinciding with H4 UKC) plus with being under capital preservation rule a 1R target is okay.
- Price moved down to almost taking out all of the buying tail in D but one TPO. I expect the move go further down. I am happy with letting the trade on the way I did.
- 2nd DTTZ
- I expect to see the 2nd DTTZ to be a sustained auction to the first move. Although M5 is showing a potential reversal but nothing strong (yet) so for now that is considered a slight pullback. M15 closed as an Inside Bar
- G closed as a Doji and formed a Poor Low with D, M15 Bullish Inside Bar before almost taking out LTF demand. With 2nd DTTZ there could be a reversal. Although with the Poor Low in place this is not the best opportunity.
- H closed as a Gravestone Doji retracing back to IBR low which could have been another late-sustained auction entry. M15 closed as a Bear Engulf. H4 traded lower from H4 supply. With Poor Low still intact there could be a move down in I TPO.
- 1st DTTZ
- Which hypo played out and how did I hypothesize it playing out? How did it actually play out? What did the profile and price action show?
- Hypo 1 — Mean Reversion
- Narrative: Open sentiment. Nearby supply.
- Preferred: Strong bearish PA, and IB extension down or a (quick) failed auction if there is an initial extension up.
- Con: No clear reversal on H4, if D1 supply gets taken out
- 100% correct
How accurate was my assessment of market context? What were the circumstances of the developing narrative? How did they develop according to DTTZ?
During the 1st DTTZ there was an extension down. With C being that long I did not want to enter in on IB extension below (although I could have). I gathered that due to underlying M30 demand and trading into H4 demand there could be a bounce and potential late-sustained auction entry. Which came at IB low. I did well to assess the situation and visualize what I wanted to see and then act on it.
What was the play of the day?
Was I right on the outcome? Which Hypo played out and why was it not Hypo 1 (if any)?
Yes I was right on Hypo 1
Was there an opportunity and did I take it?
There was and I did.
Entry: Sell Limit Order at IB low for a late-sustained auction entry
Profit Margin (ADR or congestion): VAH would have been 2.5R and expecting H4 demand to get taken out there would be ample room for the trade to move.
What would a price action exit rule have done?
0.6R through a M15 Bullish Inside Bar
How was SL placement and Sizing?
Due to having the same entry as a momentum trade I deem it to be good. Entry was at x.xx23 with SL at x.xx53.
What would time-based have done?
What could I have done better?
I think I did well today. Based on the market narrative I visualized what I wanted to see and I acted on it when it developed. Then… I let the trade do its thing by monitoring the profile for LLs and a sustained auction. Gathering it was going to be a low/medium initiative activity day due to underlying LTF demand and popping of H4 demand I stayed with the trade until it nearly hit my 1R target. Did well here.
How did I feel before, during, and after the trade?
I felt a little unease when C TPO closed as a Marubozu thinking I might have missed the move as it looked to have strength behind it. Then gathered objectively what I would like to see as my initial pullback further within IB seemed less probable I waited for a further extension down and signs of a low/medium initiative activity day and due to a sustained auction a possible re=test of IB low. This is where I put my Sell Limit Order and it got hit quite quickly and traded lower.
How well did I manage my physical, emotional and cognitive states?
I did well here.
What did I learn today?
I learned that if a trade runs away from me it is okay. I learned that due to congestion in the way there is a possibility for a bounce (even when H4 SD gets popped which I have been forward-testing). This bounce can offer a late-sustained auction entry.
What’s one thing I need to do more often?
Trust in my trading skills
What’s one thing I need to do less often?
Worry about any deadline. There is no there. There is only consistency in progress.
Under the circumstances, did I perform at my best?
Yes I did my friend. Hope you did as well.
For my trade plan(s) on this particular day, go here: