Session
System Performance: How many points did my system capture if I could trade perfectly?
Confluence:
Bearish (Strong): 9:35-10:15
Neutral: 10:15-11:30
Guide:
1. White box- Time of Bearish (Strong) amongst internals in confluence
2. Red line- Stop
3. Green line- Target
4. Red arrow- Exact Entry point
Trade 1: 2m candles
- This is a During V formation short where I am looking to get in on a lower high while risking 1 point above HOD. Since internals are strong bearish I should have an aggressive target which is a full reversal (break below OP).
Result: 4.75 pts
Trade 2: 5m candles
- This is a 5m countertrend new H/L entry. With a 2 pt stop this was top ticked.
Result: -2 pts
Trade 3: 5m candles
- Another 5m countertrend new H/L entry. Again this one got stopped out.
Result: -2 pts
Overall system results: 0pts
My Performance (2m candles)
Trade 1,2, and 3 are all the trades that my system would have taken exactly. I did not panic exit I did not take any other trades, I only traded my system and my system alone. My result was about -1.75pts so I did not have perfect entries and exits but I was very close to how my system performed. The only reason I am slightly under the systems results is because on the 3rd trade I wanted to make sure I dont have too tight of a stop so I widened it an extra 1.5 pts.
What I did right:
- Fully followed my system. Trading never felt so boring lol. I was just sitting here waiting for a new 5m countertrending entry and I had nothing to do in the meantime. It felt weird as I usually am sitting there looking for any possible entry but waiting for an exact scenario felt somewhat trivial and boring. Although it was boring, I felt as though my emotions and personal beliefs and biases had legitimately zero effect on me whatsoever. That has never happened before so in the way that it felt today. I think this is a massive step in the right direction but I do think my system still has a ton of work to go.
What I did wrong:
- I cannot have my system be too rigid to the point of fully neglecting very important factors. Lets dive in
System Adjustments:
Upon speaking to the pod they suggest that I dont make my system too rigid as most of them have some discretion. Their examples of how to use discretion today was the fact that usually after a large trending week, it is unlikely we have more large trends. Today is the first monday after a 5% week and the market ended basically flat with very choppy and ugly price action. This is very similar to my discretion I use on the day before FOMC, CPI, JOLT, NFP, etc. I always stay much more scalpy on the days prior to those events. It is common knowledge that after a large day we usually have a tricky time moving a lot again the following day. In respect of that I should have today been more willing to scalp trades and not really look for full targets. I also could have just adjusted my strategy to be weak no matter how ugly internals looked thus no 5m strength countertrending entries and no ES, rather 5 MES.
Examples of discretion:
- Definitely dont need to use all of these such as sweeping Asia H/L and London session stuff as well as NWOGs but everything else is very valid. During times like this that is when I need to make sure I give less credence to internals and make sure I am very cautious.
How did I perform today?
With the knowledge I knew before the market open I think I traded as well as I possibly could. I do think I could have definitely been more cautious of continuation and strength to the downside as its just very difficult to do that after a large week. Given my system I did exactly what I was supposed to do and if that means I lost money then so be it. From here on I am trading my system with 10% discretion and if that discretion makes me lose money, again, so be it. I need to tweak some things but doing a full overhaul will not happen for a very very very long time.
Entries and Exits: System
Type of day: Discretion