All signals were in place. I had order flow confirmation, but for some reason, I just didn't pull the trigger in time. I was hesitant, and was waiting for more confirmation. I don't know why I did this, as thus far I haven't had a problem losing in a trade. Anyhow, Murphy's law kicked in and the trade shot off in the direction that I anticipated. Pure frustration, as this was a missed opportunity to enter in at a good location. Everything was a "go" in my plan, but I didn't take the trade.
One thing I'm glad I didn't do was chase the trade, even though it continued to head up, I don't want to ingrain habits outside of my trading plan.
Anyway, after seeing this shoot upwards, I decided to call it a day.
I decided to take a more proactive approach to my trade management during my first trade (I went short). I got all of my signals to enter into the trade. Once I was in, my first PT was met fairly quickly (vwap). I moved my stop in my favor one tick. A couple of minutes later, my next PT was hit (vwap 1st SD low). At that point I put my stop at break even. As the trade was unfolding, I noticed that there was regular bullish divergence showing on my charts (10000 and trend charts). I decided to move my stop 5 ticks above the low of the last range bar (to lock in profit), and moved my last PT further down to basically let it ride. I wasn't exactly sure where to place the last PT to be honest. I was gonna let the market take me out at my revised stop or take a ride downward into more profit (to who knows where). Ends up I was taken out at my revised stop, which was OK since all three lots ended up in the green. Turns out later that price continued further down in the direction that I was anticipating. A little frustrating to see that happen, but then again, there was no 100% sure way for me to know at the time it was going to go down further. The only thing I can think of is, at the time when I saw the regular bullish divergence, the last bar didn't have order flow confirmation signaling a potential reversal. Exiting trades/trade management is something that I will need to continue to work on.
Trade two ended up being a small loser (went long). Smallest loser I had thus far. Again, I took a more proactive approach to my trade management. First PT was met with little resistance, at which point I moved my stop one tick in my favor (for a 4 tick stop). I had my second target at the VWAP, which was pretty close to the developing VPOC. I was debating on whether or not to put the 2nd PT at the VPOC, since it was a little more conservative and easier to meet. Price ends up trading at the VPOC and turns around. I was 1 tick away from getting filled on my 2nd PT and moving my stop to breakeven for a risk free trade. As I was watching price come back down, I was watching the DOM and the footprints to see if price would come back to my stop of 4 ticks. When it got within 1 tick of my stop, I decided to exit the trade based on my hypothesis that there were very few buyers holding price up and that my stop was going to be hit and then some. My hypothesis was right and it was the right exit to make. I got out on my last two contract for -3 ticks (-6 ticks total).
The first trade I took came off of a pretty big down move. It looked like at the time that sellers were getting exhausted based on the delta momentum divergence. Order flow confirmed and I entered into the trade. I placed PT's based on VWAP level (seen in pic). Once again, first PT met, but last two stopped out.
Second trade got to its first PT, but did not get filled. Ended up getting stopped out on all three lots. That was extremely frustrating. If I was doing AI/AO on this trade, I would have probably moved my stop to breakeven at that point.
My third trade could have been managed a lot better, but it ended up profitable, so I won't beat myself up too much. First PT met quick. I set the 2nd PT based on what I was seeing on the VP. Between 1438.25 and 1438, there was over a 10,000 contract difference. So I hypothesized that there would be some temporary support at that area. I set my 2nd PT at that area and was filled. I was right in my hypothesis. The mistake that I made was not getting out at that same spot with my third target. I moved my stop to breakeven, and wanted to see if price would move down further. It didn't get too much farther, and I got stopped out on my third lot.
The following user says Thank You to chungp2 for this post:
The differences in my AI/SO and AI/AO trade management continue to distance themselves from each other. In a way I feel good that one of my plans have proven to be profitable (so far), but at the same time, I'm a bit discouraged that I seem to be out of sync with the market for the bigger, more profitable moves.