Today was a very exciting day in the world of Trade Unafraid.
The end result was a gain of $144. While nice, that's not the exciting part.
What's exciting is when you have a tool, and you discover another way to use it. That's what happened today, and it underscores how appropriate the name Trade Unafraid actually is.
My thesis was this. I saw a lot of resistance between 323.50 and 324.00 on the SPY five-minute chart. Given the gap and crap from the morning, I was looking for follow-through to the downside.
I started taking short positions, using one-minute candle breaks as entries. Of course, this is an automated entry, not something I have to time. In fact, I was able to set this trade up once and then reload with a single click.
I actually ran this trade eight times. At one point, rather than just looking for a candle low to break, I used 324.00 as a bounce level and used that as the setup. But, other than that one bounce, all seven of the other trade plans were the same setup. (I did reduce my size from 6 contracts to 4 after a gain of $98.)
Five of the eight trades were winners (62.5% win rate).
The biggest loss was $42.
The biggest win was $98.
The average loss was $31.33.
The average win was $47.60, which is better than 50% more than the average loss.
And I had more wins than losses.
But the really critical thing about this was that I had the ability to enter eight times. I didn't feel like I was over-trading. I didn't feel nervous, like I was risking a lot. And I didn't worry that the trade would go against me, and that I would still hold on, because I believed in my thesis and didn't want to be wrong.
The software doesn't care in the least if the trade is wrong. It just exits.
How many times have you held on, moving your stop, mental or actual, just a little bit more, giving the market "room to breathe"? I did that yesterday in ZM twice, and it cost me a lot.
With Trade Unafraid, I took small losses and had the confidence to re-enter seven more times!
My losses were very sane and manageable. And my thesis did finally play out. In fact, if I hadn't had a work meeting at noon, I probably would have had even larger gains, because the really big down move came at 12:30.
I finally remembered to take a video of the whole page during a trade. (You have some time to think when you place eight trades over the course of an hour.) You'll see the beginning of some graphical stuff in here that I haven't shown before. It's just a start. All of this is just the beginning. There is so much more coming!
There is no audio. The moving charts you see are several different SPY puts, as well as the SPY itself in the bottom chart. Each chart shows a line for bid, ask, and midpoint.
I'm really excited by the way this series of trades went. There is no way I could have done this manually. I would have held too long, gritting my teeth as my unrealized loss grew. Finally I would have taken a bigger loss than I had wanted to, only to then watch the move that I had anticipated happen without me. I'm sure no one reading this knows what I'm talking about. ;-)
I now have a tool that enables me to try repeatedly, limiting my losses, trading with perfect discipline, and positioning myself to catch the real move when it finally comes.
Now, I realize that I could have been completely wrong today. The SPY might never have dropped, and I could have had a losing day. But my losses would never have gotten out of hand.
Here's all the trade details, if you're interested. There were a lot of trades (zero commissions!), so it was tough to fit things into single screenshots. The Tradier Orders wouldn't fit, so there are two of them.