12/1 Trade Review → +20pts/+$1,000 Total Gain on 1 Trade:
Here’s a screenshot of the day’s action. I marked up one spot on the chart that I want to discuss. Keep in mind that the white horizontal lines indicate the initial balance high and low (which are the actionable entry levels for my strategy).
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1. TRADE #1: Long at Initial Balance Low → +20pts/+$1,000
Nice initial balance range today (50+ points) to provide ample opportunity on fades back to balance. This was my only trade of the day – a long at the initial balance low right after 10:30am. Nice initial impulse with continuation into VWAP.
My full target was about 32 points (on 7 points of initial risk) – and I tried to give the trade some time and space to overtake VWAP, but I exited for 20pts on the rejection. Almost had a re-entry opportunity around 12pm, but wanted it closer to IB low.
Conclusion – Only 1 Trade With 1 Contract, But Still a Solid Day:
It was nice to finally see the initial balance have some range to it (over 50 points) because the past week or two has only been about 20 points. For my particular strategy, which involves fading extremes, the bigger the IB range – the better.
I only took one trade today, but it was a good one. It had a nice initial impulse off the IB level – and then followed through with continuation all the way into VWAP. Not many trades have been coming this easy recently.
The rest of the day was essentially a non-step test of VWAP without being able to push through and hold above for any meaningful period of time – until about 2:45pm. I’m typing this up around 3:30pm and done for the day.
We’ll see how the week closes out tomorrow, but the account is currently standing at nearly +7K (about $2K away from target).
Written by Matt Thomas (@MattThomasTP)
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