Right. That’s it. I’m out. Out of Oil, Facebook, and Google.
Call me chicken if you like. But not going to sit back and watch profits like that (relatively speaking) slip away. Also: stalling at pivots. Matter of fact: Facebook has traded to and stalled at R4 no less. Oil doesn’t seem to be able to break through today’s high (not for now anyway).
Anyways. I’m happy. Relatively speaking. And here’s why I say relatively speaking:
Realized profit for the month thus far: 9.98%.
But taking into account current floating P/L: 3.89% (but will update after the close).
Added problem (and one of the reasons why the floating loss is so high): for some obscure reason my lot sizes on both the S&P and the Dow are currently over what I should be trading on each of them. And by the time I scale-in to full positions they’re going to be more than double what they should be. I actually have no idea how that happened (it wasn’t me being greedy or sure of myself I assure you). Not the end of the world. All it means is that I cannot take anymore trades other than starting to scale-in on the NASDAQ tonight. And I will have to adjust the hard stops on my two oversize positions to accommodate for my error.
So currently short Gold, S&P, and the Dow. And that’s it.
One thing I need to add here is that I’m very pleasantly surprised at the amount of money I made on Facebook and Google relative to position size, margin requirement, and spread. When I saw the spread cost come off the account when I opened the positions I thought “oh no that’s just great”. But it’s all relative really.
Anyway. I don’t see RSI(2) closing below 70 on any of the instruments where I’ve closed out at profit. So no rules broken at this time. True.these things could have tanked in the next hour and then the positions would have to have remained open. Or they could shoot up even further in the next hour or so. Sucks to be me either way I guess. But I am satisfied.
And I will admit that I’m not convinced by this reprieve in Oil. To be honest: it appears to have hit resistance right where it’s trading now (both of them). In addition: even although ADX’s acceleration is slowing it’s still shooting up. My gut feel is telling me that we’re going to hang around here for a day or two maybe, ADX is going to turn down, and then we’re going down. This will cause ADX to rise again. But when ADX starts to slow down and turn again and then head down: I reckon we’ll be at the bottom. I know I’m making a lot of assumptions here. But if I’m right: I’d sure like to take a look at some of the trend following systems that I’ve spent so much time on over the years but that have never yielded anything (and so far as I can tell that’s my fault and not the fault of the trading systems in question). But we shall see. I think I’m going to have a little time to revisit and see what I can come up with.
So there you have it thus far for today. Good day.
Not going to be able to scale in to the NASDAQ using exponential formula. Sorry to disappoint. Even at my minimum lot size it will push me to three times the maximum position size. And my S&P and Dow positions are worse than I thought i.e. by the time I’m full scaled in those positions will be FIVE times what they should be. I have absolutely no idea how this happened. But suffice to say it would be prudent for me to concentrate on those two positions first by simply plodding along with them, adjusting the hard stop to accommodate for my stuff up, and just go with the flow.
What I may in all probability do though is scale-in tier 4 or T4 on Gold AS IF I’d been using the exponential method. in other words: T4 will be the difference between what the position size would be using the normal scale-in method and using the exponential method. This is doable as it doesn’t really push any limits beyond what’s reasonable or acceptable.
Update then done:
Actually. I’m calling it a day. Will not be scaling in on any of the currently open positions at market tonight. Will rather place limit orders over the weekend. If they gap up: I’ll get in at a better price on all. If they gap down: well quite frankly and at this time I need to lighten the load on these positions more than anything else. I really don’t understand how I made these two mistakes. Not concentrating or late nights or what. No idea. Certainly not drinking (haven’t had a thing to drink for at least two months). That would have been a better excuse actually!!! LOL!!!
So that’s all folks.