Shared by
derekrucki
15; long that failed, looked like it was dying so I cut it off a little early and I was right. Ended the day here couldnt find anything else.
NET: -0.80R
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2013-02-20 13:24:36 | SINA | buy | $58.120 | long |
| 2013-02-20 13:50:47 | SINA | sell | $57.870 | 0 |
Comments
ckz8780
The logic behind this is that stocks break out and retest, but usually they don't break out and immediately crash the opposite direction. You can usually at least get a half sale in there, and since you've hedged it to the long side you make money 3x as fast when it goes up vs when it goes down. I'm gonna be doing a blog post on it soon on my blog at www.chroniclesofadaytrader.com where I'll give details on how the setup works!
derekrucki
Hmm that is very interesting i have never heard of that. Unfortunately it is imposible to tell how big of a fake the breakout may be. In this case if I had done what you said and got short at .12 and long at .16 3X, I would have triggered the short got stopped out and into the long position because .16 did trigger and then the stock fell after that absolutely destroying any viable risk reward setup with such a high entry. Now depending on what the fill is your stop is an extra half R it seems. I am curious to hear more about this though and I will watch out for your blog on it!
Leave a comment about this trade!
You need to log into your Tradervue account to leave a comment. If you don't have one,
it takes
just a few seconds to sign up, and it's free!
Great risk management. I've been playing with hedging these where instead of longing this, you short it with a stop for 3x your short above the long breakout. So if you short 100 at $58.12 you set a stop for 400 at $58.16 when it's confirmed, you lose $4 out of your profit and pay extra commission but you get confirmation. If it never confirms, like this one didn't, you make money on the short instead. It works both ways. Takes some practice to get the pricing right and you have to be speedy with the orders sometimes but in this case you actually could have made over $100 by being wrong lol