Prop Trader Journal

[Shanb]

Quote from Maverick74:

No man, not in this tape. You need a momentum tape to do that. There are too many reversals after 9:00 or 9:30. That rule is too simplistic to just apply it all the time. You really need to pay attention to the price action of each individual stock. I know it's hard. It takes a really really long time. But you will get better at it.

I don't know if I mentioned it in the previous post but I would be choosing my stocks after 9:00. I have noticed that the risers and fallers tend to settle down a bit after the first 30 minutes or so.

I would also be filtering for relative volume and looking at the daily chart for key Resistance and support. And also obviously looking at the action in the day thus far to see if it looks strong or weak.

I will definitely look for the strong action, weak news and vice versa trades...prob one of the only pure plays off of catching HUMANS off guard intraday

 

[Shanb]

Given my respect for my friend John(Mav), and the fact that he has pointed this out to me a few times. I will be looking for good news/bad action and vice versa trades. Didn't really know how I would trade them in the beginning, but I have a much better handle on that now.

Will be looking for these setups:

Example:Good news

-Gap down or unchange and selling off of open.
Hop on board, just going to watch the 1-minute and volume

-Positive to negative trade
this is pretty self explanatory

-Break of a key level
level is holding and subsequently breaks

What do these have in common...they all catch other people off guard and give nice R:R trades.

I definitely need to get something working here, Going to commit to this...will prob paper trade my basket idea as that needs some more research going forward.

 

[Shanb]

Quote from Maverick74:

No man, not in this tape. You need a momentum tape to do that. There are too many reversals after 9:00 or 9:30. That rule is too simplistic to just apply it all the time. You really need to pay attention to the price action of each individual stock. I know it's hard. It takes a really really long time. But you will get better at it.

Any input or advise on the setups that I posted above^^^

 

[nakachalet]

Quote from Shanb:

I don't know if I mentioned it in the previous post but I would be choosing my stocks after 9:00. I have noticed that the risers and fallers tend to settle down a bit after the first 30 minutes or so.

I would also be filtering for relative volume and looking at the daily chart for key Resistance and support. And also obviously looking at the action in the day thus far to see if it looks strong or weak.

I will definitely look for the strong action, weak news and vice versa trades...prob one of the only pure plays off of catching HUMANS off guard intraday

SCAN.... CLICK.... GO TO THE BANK.... or so they seem to claim....

some company has already developed, perhaps, a scan and click to trade program, with specifically you in mind....

perhaps, you already knew about this program pitched across certain class of traders who look for this type of trading vehicle to help them arrive at profitability....

enjoy.... and wish you luck....

 

[Shanb]

Quote from nakachalet:

SCAN.... CLICK.... GO TO THE BANK.... or so they seem to claim....

some company has already developed, perhaps, a scan and click to trade program, with specifically you in mind....

perhaps, you already knew about this program pitched across certain class of traders who look for this type of trading vehicle to help them arrive at profitability....

enjoy.... and wish you luck....

Thanks I'll check it out

 

[Shanb]

Net PnL=+21
Market PnL=+47

LULU: Here's an example of Good news/Bad price action. Got sold in the beginning of the day and then recovered a bit towards the end but was still weak.

KR: Was gun shy and missed some trades in the beginning of the day. Made some later, but was ultimately a scratch.

ULTA: Put two trades here that ultimately led to one winner and one loser. Had a new trader sit next to me today and he pointed out that I was chasing...All my losses today were attributed to chasing!

Didn't trade alot today...Chased in the beginning of the day but ultimately fixed that and waited for pullbacks. Didn't jump around alot as well, focused on stocks with earnings.

I may have overreacted after yesterday, after talking to the head trader in my room he gave me some pointers and showed me some mistakes I was making. Namely getting into trades too late(buying highs, selling lows) and also trading in random stocks throughout the day.

 

[Shanb]

So as of late I was running my risers/fallers strat that I highlighted earlier. It was profitable for the past month as I was forward testing it. I tracked my results with a spreadsheet for the past 20+ trading days. It has some drawbacks and good things. Namely that it is the big winners that inevitably pay you. the smaller winners/losers kind of cancel each other out. I tried to manage it and cut the losers faster, but found that the strat was more profitable with letting them run and closing them out at the close(with the exception of them going to unch. However, I'm not going to continue to run it, because the profitably isn't tremendous.. I just see alot more upside by focusing on some other things i've been working on. If anyone wants more details I can share the strat and spreadsheet.

I also traded some discretionary stuff throughout most days. Mixed bag with this...although I have been working with the ACD method and it has really helped me and shown good promise.

 

[Shanb]

I've been more active in the ACD thread in this forum as of late. Been working on the ACD method for the past month or so and getting some help from Mav and the other some of the others pros in that thread. I definitely like the framework and simplicity that ACD brings. I think I may have met may match as it pertains to a trading style or framework.

ACD is primarily a momentum or breakout strategy if you were to classify it. At least I'm using it in this fashion.

I'm focusing on more news stocks. Looking for good news/bad action vice versa. Then just trading the price action with the ACD framework.

Product Selection:
-Stocks with news(earnings, acquisition, upgrade/downgrade)
-Good news/bad action and vice versa


Breakout criteria
-20 minute opening range
- Confirmed A-up/down(A=20% of 10 day ATR)

Other:
- Narrow pivot
-A-up is above/below pivot range/3 day rolling pivot(trade in direction of strength).

Trade:
-Price stop= ATR-based
-Time stop= 20-30 minutes
-Analyze price action and manage trade accordingly.
-Target= ATR or use discretion to allow for runners

 

[Shanb]

Net PNL=-48
Shares Traded=1400

Didn't trade very much at all today. As I didn't see alot of opportunities. Market was down hard today, but was chop for much of the session.

NTAP:

NTAP had been upgraded and made an A-up in the beginning of the day(confirming a long bias). Started drifting going into the latter part of the day...went to unch. and was acting weak. I took a preliminary short to anticipate a C-down. Was ITM 40-50 cents, but ended up getting out with a scratch as it failed to break the C-level. I was looking for bigger trade here and that is why I didn't take profits. Got out with a scratch.

GM:

Same scenario as above, good auto sales numbers but was sold into the C-DOWN. Got out after I didn't see confirmation...just kind of hung out. Eventually made new lows but after some chop.

ACI:

ACI came out with bad guidance and was bid on the open. Daily chart looked like crap but took it long on the A-up at 14.05, exited after it did not act within the expected TF.

Overall not alot of things that I saw. i was anticipating a sell in Toyota(posted in the ACD thread). Didn't take it as GM seemed like a better trade. That ended up working out quite well.

 

[Shanb]

Just got some interesting info...one of the better traders in my office trades in the same manner that I am doing. Looking for good news/bad action and bad news/good action. I told him what I was doing and he said most of what he does is the same. Looks like I have someone else that I can share more ideas with!