You shared an excellent and very thorough review of your trade. Unfortunately, the trade in question appeared to have provided you a signal for an FBO (or FTT). Instead, price rocketed higher. My only advice with respect to these scenarios (entering on pro-rata) would result in holding beyond the DU time threshold and wait to use FRV Threshold in order to make a determination of hold or sell.
In today's example, price had slightly improved providing you a small unrealized profit. If we take Jack's advice with respect to making 'wash trades' our goal, one could 'afford' to wait until ,either price retraces to 'break even,' or volume hits the FRV threshold. We need to keep in mind that our goal is to enter into a trade as volume breaks out. We call this break out FRV. We use DU Volume as a pro-rata approach to enter earlier, and we use pro-rata DU volume to enter earlier still. While using the various versions of Pro-Rata volume do provide an increased number of signals (and opportunities to enter into profitable trades sooner), we need to keep in mind that FRV remains the true determining factor between hold or sell. We hope to profit in these scenarios. While nice to profit even when we have an FBO, we should look at such circumstances as a 'bonus' only and not as a means by which we improve profitability. As long as you make wash trades your goal for an FBO, you'll provide yourself enough 'wiggle room' to capture these large moves that often occur just outside our 'normal' paradigm.
Hope you found this helpful.
- Spydertrader
I kept trying to make something happen with my final universe. I was thinking that if I could capture some of the moves that happen just about everyday by scanning the entire universe, I could increase my money velocity. It increased all right...