MIND MUSCLES FOR TRADERS
Trading Strategy Insights
E-mini S&P Futures Trade on August 22, 2019 (44 Ticks)
- Reason #1 for entry: Price moving sideways for a while after a strong move down
- Reason #2 for entry: Cumulative delta started to reverse and go up
- Reason #3 for entry: 2 consecutive higher swing lows, identified by the bullish pin bars
- Reason #4 for entry: Price crossing up the moving averages
- Reason #5 for entry: High reward to risk trade
As you can see, too many confluence factors confirming that this was a high probability trade with good result.
Entry and target
- Entered a buy (long) trade at the closing of the second bullish pin bar
Placed a limit sell order at 2919.00 (Target), based on both previous key levels and also a fib retracement level. (P.S.: I'm not as big Fibonacci user, but I refer to the Fib levels sometimes to see if there is a confluence of factors to enter the trade)
This particular trade required a lot of patience, as price started to move sideways and even against my position. This uncertainty lasted for 20 minutes. I used 3 main information to decide to let the profits run:
- Reason #1 for staying: Cumulative delta was flat when price was moving against my position
- Reason #2 for staying: Price was above moving averages
- Reason #3 for staying: Moving averages crossed up and were spreading apart
- Reason #4 for staying: Other correlated markets were all going in the same direction of my trade (moving up from a down move)
As you can see, again, too many confluence factors that gave me more certainty to stay with my original plan and keep my target unchanged.
Here are the entry and exit details. 44 ticks of profit in the E-mini S&P 500 Futures. Not bad at all for a slow trading day.
That required over 43 minutes holding on to this trade, and deciding if I should exit soon and guarantee 20 ticks, or let it run and go for the bigger target.
My patience paid off!
I'm a strong believer that patience is one of the virtues of successful traders. This is one of the skills we help traders develop at the Mind Muscles Academy. Of course, we need to have confidence in our strategy in order to have patience to stay on our trades. And this is a skill that can be developed.
I invite you to check out our Strategy and Performance Workshop, a unique hands-on, step by step live training program, done in small groups in which participants learn the process of developing and testing trading strategies; and then improving their trading execution through the use of exclusive tools that we provide at Mind Muscles for Traders.
Did you miss the rest of the Trading Strategy Insights series?
- Trading Strategy Insights 1: E-mini S&P Futures Trade on August 22, 2019 (44 Ticks).
- Trading Strategy Insights 2: Case study - using the same technique for 2 trades in crude oil and e-mini S&P 500.
- Trading Strategy Insights 3: Case study - using fundamental analysis to gain an extra edge in a crude oil futures trade - 91 ticks
- Trading Strategy Insights 4: Case study - using order flow analysis to gain an extra edge trading futures
- Trading Strategy Insights 5: Case study - using order flow analysis to spot a market change in real time
- Trading Strategy Insights 6: How to spot a reversal in a volatile market.
- Trading Strategy Insights 7: How to use market structure data to plan a high probability trade.
- Trading Strategy Insights 8: How to use price action to enter a high probability trade.
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