Shared by
tsun
After seeing the quick reversal below 27, I was ready to scalp into a long cautiously using small size.
I added back a few times over 27 and then into the flush below 27, watching how it acted around the previous low around 26.7. When it cracked slightly, I sold at the bottom near 26.6 and did not add more into it. Great risk management this time after what had happened last time when I tried to predict the bottom.
As soon as the down trendline was broken, I added back with slightly higher conviction than before that this could be the reversal point. It had been in a steep downtrend previously and was still holding lower highs, never really breaking the down momentum. I added back a bit heavy by mistake here around 27 when I wanted to be in the trade. Instead it pulled back and I took slight profit on the new average. Ideally, I should have waited for the higher low to form and add on the confirmation and the break of the previous swing high leading to the current higher low, which is what I did.
I sold the remaining into vwap as it started to grind a bit and to book my profit.
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2016-02-12 10:04:49 | ATVI | buy | $27.140 | long |
| 2016-02-12 10:04:53 | ATVI | buy | $27.160 | long |
| 2016-02-12 10:05:10 | ATVI | buy | $27.170 | long |
| 2016-02-12 10:08:30 | ATVI | buy | $26.760 | long |
| 2016-02-12 10:11:33 | ATVI | sell | $26.520 | 0 |
| 2016-02-12 10:21:24 | ATVI | buy | $26.720 | long |
| 2016-02-12 10:21:25 | ATVI | buy | $26.720 | long |
| 2016-02-12 10:21:27 | ATVI | buy | $26.720 | long |
| 2016-02-12 10:21:35 | ATVI | buy | $26.750 | long |
| 2016-02-12 10:27:13 | ATVI | buy | $27.050 | long |
| 2016-02-12 10:31:17 | ATVI | sell | $26.830 | 0 |
| 2016-02-12 10:34:18 | ATVI | buy | $26.830 | long |
| 2016-02-12 10:34:59 | ATVI | buy | $26.950 | long |
| 2016-02-12 10:35:30 | ATVI | buy | $26.990 | long |
| 2016-02-12 10:35:39 | ATVI | buy | $27.020 | long |
| 2016-02-12 10:44:11 | ATVI | sell | $27.400 | long |
| 2016-02-12 10:44:40 | ATVI | sell | $27.360 | long |
| 2016-02-12 10:47:54 | ATVI | sell | $27.530 | long |
| 2016-02-12 10:49:59 | ATVI | sell | $27.500 | 0 |
Comments
tsun
Yea totally agree, I have the tendency to do the same trying to fish for the bottom. I think the key is to not add more size on the way down because we get involved in our bias even more, but instead take the small loss while its still small and take a step back. I feel as though I can never eliminate the waiting for the right reversal moment because without being in the trade first trying to catch the bottom, I can never pull the trigger to go big when the reversal DO happen. I think the key is really risk management while its still not completely out of hand and reset our mindset each time we are wrong.. its easier said that done..
Jholden
I like that. Get involved but keep it small so I can take paper cuts.
Then when it does start going my way, GET BIG.
I agree that it is tough to really get the feel for the action by just watching it and getting too big too early just takes my head out of the game. But having the discipline to know I may take a couple small losses but if it does go my way, thats when I will get big may be the right idea.
Thanks for sharing.
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Really like the second part of this trade. After it cant hold below 26.5,
moves away from price
Makes a higher low and then trades up
The entry at 10:34 is such a great trade.
I need to try and get more of these and stop trying to catch the lows. Its tough because when I can catch a low it makes SUCH a powerful move up up BUT it usually takes 3 or 4 times to catch that move and I dont ever get the entire thing. Where just waiting for the continuation is way lower risk.