Friday, April 16, 2010

A Slight Rebound

Caught a winner and a par both in the 6B today. I can't complain, money is money and the trade worked perfectly even if it was only at 6.25 a tick. I've had to re-evaluate one of my trade setups and remove it from my trade plan. Its one of the core reasons for my losses yesterday and that gentleman, is the Double Bottom/Double Top formation.

Now i'm well aware that when I set out to re-vamp this blog and my trade plan a few months back I talked endlessly about the uselessness and futility of these setups and their high failure rate. I said that I would be relying primarily on pullback trades only. The truth is I lied a bit and thought I could still eek out some profit off of them. The results show the truth. Both my pullback and reversal setups have netted close to 300.00/contract each over the past few weeks. What do you think the DB/DT setups gave me? $-243.75. That's a pretty stark contrast. Not one winner, a few pars, and a bunch of losses. It fly's in the face of logic to continue on with them so they are gone as of today.

In other news I've been forward testing the past couple of weeks on another iteration of a pullback trade and its shown GREAT promise. Its outperformed my other pullback signal almost 2:1 in terms of net profit. But i'm not going to rush forward with it just yet. Too many times and too much money has been lost rushing things into my trade plan prematurely. But it is nice to know that yet another idea for a setup just might have merit.

Trade Results:
2 Trades, 1 Winner, 1 Par
Gross P/L: $68.75/per

No comments: