Monday, March 5, 2007

Research Trade 1.3 - "High Momentum" Trade

Short March 07 E-mini S&P: Entered on March 5th - Closed on March 5th.

Short: 1389,75 -- Initial Stop: 1391,50 -- Covered: 1384,75 -- Result: 2,83 R

Bearish in Screen I - Trading below envelope in Screen II - Entry Set-up in Screen III - Covered as the previous candle printed a threatening tail.

Comments : The key to this "High Momentum" play is to take the signal as the price stays at or below the 3 standards deviation band in Screen II. The other condition is to have a valid "Swing" set-up in shorter timeframes (I am using 21/5/1 min screens to trigger the entry and decide the Initial Stop level to do this). Will look to add on those Research trades during the next few weeks...


Gav said...

Did you take this trade? or it is for your research purpose only?.

Anyway, Nice trade.


stephane said...

Hi Gav,

yes I did, in fact I am currently testing 2 additional set-ups (mean-reverting and high momentum) with real money. The difference is that I risk only a fraction of my usual equity risk, but still want to have real money on the line in order to practice them under "real-life" conditions. I find that paper trading is not allowing me to build the same confidence in a set-up.