Trade 7 – I took one gold trade that stopped out.
Trade 8 – This was my big plan for today. Either the edge of the micro-composite profile holds or it doesn’t. I could have been a little more patient with my entry (I kind of jumped the gun) and took 6 ticks heat. I also jumped the gun on the exit. I didn’t know it at the time but the audio on my PC wasn’t working and so I didn’t get a news alert for the news release. When the news came out I saw a ton of activity right at a minor resistance level and so I took my profit. Way too early. I had a good R:R setup and I didn’t profit from it.
Now is a good time to explain my thoughts on trading 1 lot and scaling out:
I went back to 1 lot because I wanted to work on having a tight stop and test out some modifications I did to my trading plan. I’m still not finished with this however I feel I’m missing out on opportunities by not being able to take a scale. My bund trade (Trade 2) was practically the low of the day and it zoomed up into the stratosphere without me. My scale there was per my rules, so I executed ok. If I had 2 lots on, I could have captured a larger part of that move. And the same exact situation happened in ES (Trade 8). I actually jumped the gun on the exit, it wasn’t per my plan but was based on my read there (which was disturbed by the news I didn’t know about).
So now I’m convinced I need to trade at least 2 contracts. However, I’m not convinced that scaling at 2 pts is a good idea. Someone today asked me when I scaled on Euro and they said something like 6,8, or 10 ticks? I don’t scale on Euro. I want a 2:1 minimum and my risk is 10-15 ticks so I’m going for 20-30 ticks. I know this will have a lower win rate but I’m not yet convinced that a 1:1 ratio on half the position is a good thing. My thinking is that the first contract should be able to stand on its own and be profitable. If one risks 10 ticks and takes the first contract at +4 that is not likely to be profitable because it would require an extremely high win rate. A 1:1 ratio would be the minimum I’d accept on a first target and I’d really like this to be 2:1.
So starting tomorrow I will trade 2 on ES, Bund, & Stoxx. However Euro, Gold, & Crude are still experimental so I’ll continue doing 1. I don’t want to risk $500/trade on these markets when I trade with real money.
Also, since my audio wasn’t working, I didn’t get alerts for gold & crude and I missed some trades that would have worked. That’s bad luck.
So today 4 pts trading 1 contract on ES (trades with orange boxes). That’s a really good day money wise but had I been patient & trading 2 it could have been better.
All feedback is welcome, thanks for reading.