Sell - Really!

The stock market in the U.S. opened and all the stock indices were FOR SALE. You had to be quick. I wasn't but Flo was on the case as you can see. Nothing fancy. Just identifying the trend and trading the pullback. These are the trades that show the benefit of algos even just for catching entries.

Blink and You Miss It!

Today was a great example of the benefit of Flobots. Flo went short just after the open on the pullback in the downtrend. I was having an espresso when the trade triggered. I could have been looking at my Crude charts or been doing something else and still missed the trade. Flo didn't and doesn't.

I have alarms that I can use to announce a trade so I can hybrid trade it if I choose or I can ignore the alarm and Flo manages the trade. As you can also see, Flo had plenty of re-entries. Looking at my MP chart, I saw an obvious target of a VAL a little above the actual low that the move made.

Just Take the Surest Trades

Lots of traders sit in front of their workstations grinding it out, averaging, say, $4 a trade. Others look for better trades looking to have an average trade of $200 or more.

Both ways work. It's just that one is a lot more labour intensive. My Dad taught me from a young age to use brain not brawn. It took a lot of years to understand how that relates to trading. If the average winning trade is too small then a large loser will wipe out too many winners. Trading is a matter of math and the math has to work.

Using Flo, I have a good handle on the math. My backtesting, while no guarantee, gives me a strong reference of what I can expect going forward. If a picture has an 80% probability and the trade location is correct then my expectation of an average profit larger than $200 can lead to the correct trade profile to be CP.

The trade below is one such picture. The trade is an Outside In trade with the exit at the EMA, a mean reversion trade.

My Flobot trades are a reflection of what I do as a discretionary trader, taking the "best" trades.

Adapting to the Markets

I've lengthened my bigCCI to 144 on most periodicites to better define the trend. It started with the indicies as we entered this almost one time frame environment. The idea spread to other markets. I'm trading Crude, Gold, Currencies as well as various stock indices.

The thing worth mentioning is that a portion of my trades last up to 48 hours or so. There are a lot of opportunities holding "overnight". The markets are almost 24 x 7 so why shouldn't there be opportunity at all hours. The chart below is one such trade. I've been selling the Euro/$ since just above 1.39. I have missed some of the gaps down but by holding my trades longer this has been minimized.  The NinjaTrader chart shows the Bloodhound logic choosing the "right" sling (pullback/thrust) for a very good entry. I've got a stochastic on the chart to show that cyclicality is not enough. An entry picture conforms to what I need to see when I'm trading as a discretionary trader. All those conditions must be in my entry logic for a signal or auto entry.

I'm still short some on this trade, eventually looking for 1.335 as my next major target but I'll be in and out a number of times before then.