Friday, January 22, 2016

Sometimes it doesn't work - Day Trading: Jan 22, Intraday

Here's the big secret that I want to share. The rules of the Range Compression Trading System that I shared a couple of days back - them don't work all d time.

In the second trade today, I had a Trade Drawdown of 31 points giving me a loss of 13 points. I followed all the mechanical Stop Loss rules, and was in that trade for 126 minutes. Just like yesterday, after the first winner, I took the second trade with a larger quantity. So, while my daily winning streak up to 10 on the Trading Stats page, in reality, it was a loss today. Not a good feeling after all these days of profit, but I will give it some time before I start System Hopping again.


Shakeouts - the worst type of Stop Loss hits


Both the SL hits were of the worst kind - the Shakeout - where the Price eats the Stops and then immediately reverses direction. This happened to me very frequently in December. I was also shaken out a few times this month, including yesterday.

Today's shakeouts... well, you could call them bad Stops, but for me these were just the same mechanical Stop Loss rules that I have been following for the past 2 weeks.


Nifty M3 Candlestick Chart



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