Trade Nbr. 26 - 2007

Short June 07 E-Mini Nasdaq 100: Entered on March 30th - Closed on March 30th.

Short: 1787,00 -- Initial Stop: 1796,50-- Covered at 1779,75 and 1788,0 -- Result: 0,35R

Bearish in Screen I - Pullback to value in Screen II - Entry Set-up in Screen III - Covered Half at 1779,75 because of the threatening tail of the previous candle and then stopped by my trailing stop on the other Half.

Comments: Decent trade - the market was not willing to give more in this one...

Trade Nbr. 25 - 2007

Short June 07 E-Mini Nasdaq 100: Entered on March 29th - Closed on March 29th.

Short: 1794,00 -- Initial Stop: 1799,75-- Covered at 17 89,0 and 1779,75 -- Result: 1,67R

Bearish in Screen I - At value in Screen II - Entry Set-up in Screen III - Covered Half at 1789,0 because of the threatening tail of the previous candle and Half at the objective (envelope in Screen II).

Comments: Decent trade. First half exit was not totally valid but I guess that my last 2 trades made me a little more nervous than normal...

Trade Nbr. 24 - 2007

Short June 07 E-Mini Nasdaq 100: Entered on March 29th - Closed on March 29th.

Short: 1794,25 -- Initial Stop: 1799,0 -- Stopped: 1799,0 -- Result: -1,0R

Bearish in Screen I - At value in Screen II - Entry Set-up in Screen III - Stopped by Initial-Stop.

Comments : Bad trade (again) - This time around I mismanaged Screen III (Only 1 screen :big improvement compared to the last trade... :-)). Entry signal was valid but as the entry candle reversed and printed an engulfing candle, I should have closed the position.....

Trade Nbr. 23 - 2007

Short May 07 Soybeans: Entered on March 27th - Closed on March 27th.

Short: 758 2/8 -- Initial Stop: 761 4/8 -- Covered: 759 6/8 -- Result: -0,46 R

Barely Bearish in Screen I - Uncompleted pullback in Screen II - Entry Set-up in Screen III - Stopped by my trailing stop.

Comments : Bad trade, made many mistakes in this one:
1. Screen I is basically neutral and not bearish !!
2. Pullback in Screen II did not reach value...
3. Initiated the trailing-stop too early !!

Difficult to mismanage a trade in all 3 screens.... but today I achieve it !!

Trade Nbr. 22 - 2007

Long June 07 E-Mini S&P 500: Entered on March 26th- Closed on Mar 26th.

Long: 1444,0 -- Initial Stop: 1440,75 -- Sold: 1448,25 -- Result: 1,30R

Bullish in Screen I - Pullback to value in Screen II - Entry Set-up in Screen III - Sold 5 minutes before the Closing Bell.

Comments : Good trade - Got lucky on the exit as market could not maintain the momentum into the close...

Trade Nbr. 21 - 2007

Short May 07 Corn: Entered on March 23rd - Closed on March 23rd.

Short: 407 6/8 -- Initial Stop: 410 4/8 -- Covered: 403 6/8 -- Result: 1,45 R

Bearish in Screen I - Overbought in Screen II - Entry Set-up in Screen III - Covered as the market was printing a second threatening tail...

Comments : Good trade.

Holidays !!!

I will be skying in the Alps next week with my family, so no trading and no posts !!

Have a great week !!

Trade Nbr. 20 - 2007

Short May 07 Soybeans: Entered on March 9th - Closed on March 9th.

Short: 755 6/8 -- Initial Stop: 758 6/8 -- Covered: 757 2/8 -- Result: -0,50 R

Bearish in Screen I - Pullback to value in Screen II - Entry Set-up in Screen III - Covered as the market was reversing the entry candle very quickly.....

Comments : Good exit. All markets have been very difficult to trade this week !!!

Trade Nbr. 19 - 2007

Short April 07 Gold: Entered on March 9th - Closed on March 9th.

Short: 653,80 -- Initial Stop: 655,30 -- Covered: 652,70 -- Result: 0,70 R

Bearish in Screen I - Pullback to value in Screen II - Entry Set-up in Screen III - Covered as the market was reversing all its losses very quickly...

Comments : Good execution. Markets continue to show a total lack of trendiness......

Trade Nbr. 18 - 2007

Long April 07 Crude Oil: Entered on March 8th- Closed on Mar 8th.

Long: 61,77 -- Initial Stop: 61,56 -- Stopped: 61,56 -- Result: -1,0R

Bullish in Screen I - Pullback to value in Screen II - Entry Set-up in Screen III - Stopped at initial stop.

Comments : Another choppy day !! Tough to find decent set-ups in futures this week.....

Trade Nbr. 17 - 2007

Long April 07 Crude Oil: Entered on March 5th- Closed on Mar 5th.

Long: 60,60 -- Initial Stop: 60,34 -- Stopped: 60,34 -- Result: -1,0R

Bullish in Screen I - Oversold in Screen II - Entry Set-up in Screen III - Stopped at initial stop.

Comments : Chopfest day !! Good example of how some days are more difficult than others !!

Research Project

During the next few weeks I will undertake a "real-time" testing of my new trading rules, risking 1/20 of my normal "R value" (ie: risking only 0,05 % of my trading equity per trade).

The purpose of these "Research Trades" is to forward-test those trading rules and to rehearse them in "battlefield-conditions" in order to increase my confidence in them. I will monitor them and validate them (and my execution) after at least 30 trades before increasing my trading size and incorporating them into my trading arsenal.

The first set-up is a "Mean-Reverting" trade that takes as a filter "Bullish" or "Bearish" divergences of the Strength Index in the "Strategic Window".

The second set-up is a "Strong Momentum" trade that targets "High momentum" moves.

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...

Trade Nbr. 16 - 2007

Long April 07 Crude Oil: Entered on March 1st- Closed on Mar 1st.

Long: 61,59 -- Initial Stop: 61,38 -- Sold: 62,08 -- Result: 2,34R

Bullish in Screen I - At value in Screen II - Entry Set-up in Screen III - Exit after the previous 2 bars printed threatening tails.

Comments : Good trade. Compared to yesterday, was patient enough to wait for the price action to indicate that the loss of momentum was too strong to stay in the position.....

Trade Nbr. 15 - 2007

Short March 07 E-mini S&P: Entered on Feb 28th - Closed on Feb 28th.

Short: 1413,50 -- Initial Stop: 1415,75 -- Covered: 1415,00 -- Result: -0,66 R

Bearish in Screen I - Overbought and pulling back to value in Screen II - Entry Set-up in Screen III - Stopped out by my trailing stop.

Comments : Poor trade. Good entry but once again lowered my initial stop too early !! Very frustrating since would have been a multiple Rs win again.... It is recurrent problem, as Brett Steenbarger mentioned in one of his numerous brilliant articles : it is important to Trade to Win and Not Trade Not To Lose......