Trying Entries with small Stop Losses

I am trying out another variation of the Range Compression Trading System. I like this so far. It seems to have potential. The idea is to take entries with tight Stop Losses, and trail the Stop Loss only when there is significant profit.

This is still WIP. So the rules are still fluid, vague and changing. Some are mechanical, some are left to to discretion - the rules cover scrip selection, entry, initial stop loss and trailing stop loss - all are currently WIP.

Trades on Wednesday, Jan 6, 2021

First 3 trades netted losses, and the fourth trade covered the losses. Scratch day.

The first 2 trades were in #HDFCBANK. As I said, the rules are still fluid. At the start of the day, I had not planned to take trades within previous day's range, but took those trades out of impatience.

#BANKNIFTY was an ok trade, I think.

The last trade was in #RELIANCE - again, I overrode my rules when I took that entry. And that one worked, so I added similar entries to my rules for the next day.

I also looked at #NAUKRI. It was a lively chart. A good point to go long in the first hour, and later points to go short are clearly visible on the chart. Please acknowledge my expertise in analyzing the chart after the end of the trading day. 

Trades on Thursday, Jan 7, 2021

Another scratch day. 3 losses, followed by a winner that covered the losses.

First entry signal - a strong one - was to short #INFY. Did not take that short because it was within previous day's range. But this one would have worked well. So, now I have iffy rule about entering within previous day's range.

First trade was in #BANKNIFTY. I think it was a good entry location though it resulted in a loss.

Next, a long in #INFY. Entry was good, I think. Could have reversed to short, but there are so many ifs and buts.

Next was a short in #RELIANCE. Just shaken out before it moved down. 

Then the #NIFTY short that made money. Nice short, I think. Was patient with my trailing stop.

 

Trades on Friday, Jan 8, 2021

-1.5x loss day. Initially, took impatient trades that got me in the negative. Then got into a trade that started moving late in the day. If I had just held on, this would have been another day of 3 losses, followed by 1 winner that covered the losses. But मैंने खुद के पैरों पर कुल्हाड़ी मार दिया and tightened my stop loss. Even that early exit was fine, but then I decided to shoot myself in the foot. I tried one more impatient trade in the last few minutes on the day. My foot hurts.    

First 2 trades in #INFY, a long and then a SAR to short. Both did not work, but were within my entry rules. I think the entry location was good. Look at the gap with which #INFY opened. I thought it could have gone either way, and hence my impatience. Still ambiguous about whether I should take such entries or not.

I was still not done with liking the #INFY chart, so took another trade that lost.

Then, a long in #NIFTY that did not move for a long time. So when it started moving.... well after sometime I got jittery and tightened my stop loss. Mistake.

Took one more trade in #INFY. Impatient trade - don't really know why I took it - FOMO maybe? #INFY was moving fast at that point, and I took a gamble on short.

And then there are a couple of charts that I started watching only after mid-day. #MARUTI and #WIPRO moves had serious money. Scrip selection is important. Catch a full move like this and my week is made.