Trade Planning:
- Daily Chart: Downtrend, Consolidation above recent lows.
- TTM Squeeze: Daily
- Earnings Date: N/A
Reason For Entry:
- Playing Daily chart. IWM is in a pattern of consolidation above recent lows. Price entered buy zone at the 21ema resistance area. Opened the trade with a position size at about 1% of portfolio. Looking for IWM to retrace and make new lows.
Reason For Exit:
- IWM gapped up at the open along with the rest of the market. Trend was broken and TTM fired long. Closed the position at the open for a (45% loss) which adds up to 0.5% of my portfolio.
Recap:
- The entry was correct (21ema). Exit was also correct (closed position at the open) as IWM gapped up at the open, trend was confirmed broken and TTM fired long. This is a great example of POSITION SIZING. Although the contracts were a 45% loss, the loss to my portfolio was minimal (0.5% of portfolio).
Execution detail:
Date/time | Symbol | Side | Price | Position |
---|---|---|---|---|
2020-04-08 13:15:55 | 17 APR 20 115 PUT | buy | $3.300 | long |
2020-04-09 10:30:18 | 17 APR 20 115 PUT | sell | $1.830 | 0 |
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