Dec 3-7 Trade Review

As I mentioned in my last post, all my trades are 100% automated. I don't make watchlists and I don't get up early to plan my entries and exits. All of this was done months ago when I built my automated strategies. Now I just launch the software every morning and let it run. Profit taking and risk management are built in, eliminating the emotional and psychological aspect of trading. What a time to be alive.

Q4 earnings season is cooling down so only one trade fired for me this week, but it was a win nonetheless. My "Recent Earnings Making New Lows" strategy sent an order on Monday for $VOD. Playing off the recent support at the $21.20 level, my short entry got filled at $21.13.

$VOD automated trade entered at 21.13

Among a number of other conditions, this strategy will only fire a trade signal if the overall markets are favorable. So if the markets are strong it won't fire, and the opposite is true for my long strategies. This is what my overall market filters look like for this particular strategy:

  • Dow Max Change 15 Minute: 0.2%
  • Dow Change Today: -0.6 - 0.3%
  • S&P Max Change 15 Minute: 0.09%
  • S&P Change 30 Minute: -0.6 - 0.2%

Watch JC Parets (@allstarcharts) Outline the Overall Markets at the 2018 Trade Ideas Summit

I build and refine my strategies using TI's OddsMaker app, which is a backtesting tool built to test against recent price action. I don't care how my strategy performed 20 years ago, I care about what is working right now, and this tool is perfect for that. Here's a look at the 60-day performance for my "Recent Earnings Making New Lows" strategy:

And the equity chart, based on a $30k starting account balance and $5k position size: