Trade Summary for July 23, 2024

Trade Details:

• Entry Time: 12:01 AM
• Status: Closed
• Portfolio: APEX 50K EVAL/Lance B System
• Broker: Tradovate
• Asset: /MNQN24
• Type: Short
• Patterns:
  • VWAP (MONTH)
  • VWAP (MONTH) Upperband To Lowerband
  • VWAP Bounce
  • VWAP Long
  • VWAP Upperband Short
  • VWAP Upperband To Lowerband

Notes:

• 10:05 AM:

  • Initiated a short position at the break of the prior day’s low (PML) during the premarket session.
  • Noticed a gap between the prior day's close and the premarket open, indicating a potential shift in direction.
  • Recognized displacement below the key 1 Day VWAP Lowerband, confirming a bearish bias.
  • After a failed long trade attempt off the VWAP band, confirmed the shift in direction and shorted the PML as it was the only clear stop-loss placement.

• Trade Execution:

  • The trade was immediately profitable, indicating strong downside pressure with no drawdown from the entry point.
  • Decided to let the trade run without a specific downside target, anticipating a trend day based on the weekly chart moves and the strong sell-side pressure.

• Market Behavior:

  • Observed consistent lower lows with no retests of the entry price, reinforcing the strength of the entry.
  • The VWAP and Lowerband continued to downtrend, acting as a continuation sell signal with massive downside volume.

• Outcome:

  • Took a walk and decided to lock in profits upon return, closing the trade with over $500 in profit, pushing the account balance over $1,000.

Additional Notes:

• End-of-Day Reflection:

  • Achieved the biggest profit day on the account, totaling over $1,200.
  • Increased trading frequency based on the notes suggesting the VWAP trade as an "easy money trade."
  • Faced a critical moment with a VWAP dip buy that came close to blowing the account but was saved by the monthly VWAP support.
  • Acknowledged the risk of trading too heavily, with a full position size of 16+ contracts, and the importance of not over-leveraging with a trailing drawdown.

• Key Takeaways:

  • Successful in capitalizing on the VWAP patterns and adhering to the identified signals.
  • Realized the importance of managing position size and avoiding excessive risk.
  • Future trades will be limited to entering 1 micro at a time and building positions incrementally to manage risk effectively.

Key Lessons:

• Right:

  • Accurately identified the VWAP lower band as a support level, leading to a well-timed short entry.
  • Trusted the VWAP signals and followed the identified patterns, resulting in significant profits.

• Wrong:

  • Took on excessive risk by trading too heavily with 16+ contracts, nearly risking the account.
  • Averaging down to improve price, although it worked out this time, it is not a sustainable strategy given the trailing drawdown.

Overall Summary: This trade highlighted the effectiveness of using VWAP patterns and signals to identify high-probability trades. While the execution led to significant profits, it also underscored the importance of risk management and the dangers of over-leveraging. The adjustment to trading frequency and position sizing will be crucial for sustaining future success and protecting the account from significant drawdowns.

Today I made a great deal of money, my biggest day on this account since I began, in total, I made over $1200 dollars. and I did it in part because I did tweak my 2 trade rule today, and I actually spent most of the day involved in a trade, and its because I realize that I need to pick up my trading frequency on the trade that has been suggested from my notes, and that is my VWAP trade. It seems to currently be my 'easy money trade'. And I just decided to keep taking the signals and trusting the outcome. 

I will same, I came waaay to close to blowing the account today, and that was with a VWAP dip buy, that was saved by the Month VWAP. It wound up sweeping the 9:30 Open Low, taking the long stops from the morning session, and then ripping in my direction. It really was a make or break moment for this account, and I nearly lost it. I was waaay to heavy in size, at full position was around 16 plus contracts. I can never do that again. I was averaging down to improve my price, and although it went in my direction, thats besides the point. You simply cant trade that size with trailing drawdown ever. 

So therefor, If I want to increase my trading frequency, I can only enter 1 Micro at a time, and build a position with 1 Micro at a time. With this particular trade, I was slapping the trade with 2 micros at a time. And its too heavy.

The only way I can add is with A side setups, and confirmations through multiple timeframes.