Key Takeaways from Today's Trading Session

1. Adaptation to System:

   • Focused on taking positions based on market displacement and direction from the overnight session.
   • Anticipated a shift at the Month VWAP, which influenced the decision to short.

2. Trade Execution:

   • Shorted against the prevailing H6 and H12 trends, aligning with the strategy of trading based on displacement from key levels.
   • The trade did not hit the stop loss (set at the High of Day) and trended below the 9 & 21 EMAs on the 5-minute chart.

3. Drawdown Observations:

   • Experienced drawdown due to a variation shift entry on the 5-minute chart.
   • Despite a winning trade, drawdown occurred, highlighting the need for improved entry strategies.

Key Intention for Tomorrow's Trading Day

1. Backtesting Displacement Areas:

   • Conduct backtesting on displacement areas to identify common themes that lead to successful trades.
   • Focus on how displacement from key levels correlates with winning trades.

2. Refine Entry Strategies:

   • Analyze and fine-tune entry strategies to minimize drawdown.
   • Investigate ways to enhance accuracy in displacement entry points and reduce adverse effects from variation shifts.

3. Data Analysis:

   • Gather and analyze data on how displacement from key levels impacts trade outcomes.
   • Use this analysis to refine strategies and improve overall trading performance.

By focusing on these areas, you can work towards optimizing your trading approach and potentially increase the success rate of your trades.

I just followed the adaptation to the system. Which is taking positions based off of displacement and where the market is heading, from the overnight session, I figured that the move would shift at the Month VWAP, and present an opportunity for sellers to get involved. At the moment I shorted, it was against the prevailing H6 and H12 trend, but it appears that displacement from these key levels is a better appraoch thus far, unless the data changes. I took the trade, it never hit stop which was HOD, and it steadily trended below the 9 & 21 EMAS on the 5 minute chart.

My key intention next is to do some backtesting on all of the displacement areas, and try to gather data on common themes that lead to winning trades. Although today was a winning trade, I did experience some drawdown from the variation shift entry on the 5 minute chart, and if I can find ways to fine tune these entries, and avoid as much drawdown as possible, I think that would be a great next step. Finding common entries based on displacement areas off of key levels.