Perfection is the enemy of execution
By Juan Vega, contributing author and trader / Bogota, Columbia
When you are using warp software, there are sometimes when you cannot find the predictive times signals “aligned”.
As a trader, at the beginning I always want the perfect dot in the swing highs and swing lows, telling me, the market is ready, perfect, just execute! But after several failures I asked for help and paid for learning “inversed patterns”. I also have paid for the trading room 2 or 3 years ago, to learn more and ask more, maybe my first 2 or 3 months.
I trade with 2 charts always: My fast time frame chart in 1 minute and my anchor chart in 3 minutes. Sometimes I check the warp panel to identify messy time signals. So, when I see too much signals closer each other, defining me the “range” type market, I use my 3 minute chart more often. My trading session hours are from 7:30 until 11:00am max. I trade the New York Session that its perfect for me.
Today I trade Gold futures market, who pays $10 per tick. And my plan is simple:
1. Read my economic calendar
2. Check the range before the opening bell. Accumulation zone
3. And identify possible range zones y the future. Closer signals in the Warp panel
4. Ready with my ATM of 3 or 4 contracts
5. 3 trades per day
At the left I identify the range before, 8:20, so at 8:31 I did not see any violence in the price or a clue to validate my entry. So I said, " if the candle closes over the 120 EMA (the blue one) I open a trade."
And it did it.
If you check at that time, I have a yellow dot (08:41) Signal. When you have this situation, I just take the dot as an objective profit level; If the price crosses the profit level, I HOLD it until the next price signal (8:48). My ATM for 4 contracts in Gold is, First 2 contracts takes profit @ 20 ticks, Third contract @ 40 ticks and the third one “the runner” @ 80 ticks.
For my Risk management, I just said: “Or pay me the first 2 contracts or activate my Stop Loss”. For this trade My first 2 contracts reaches the first 20 ticks ($400), at that moment my ATM moves my Stop Loss to BE(Break even), and the other two contracts were closed when my time at 8:48 was ended for ($540). At the level defined by the dot signal @ 08:58 I identify a pattern 4, and I was expecting a moderate size candle closing over the yellow line, but it never comes!!.
The New Home sales report was lunched, and the price pumped up. I just said “Bye Bye” the candle was too big for me, and never comes back, 50% of the candle to take a risky trade, by price action with lower size position. I ended my day with almost 1k and trade no more. I was satisfied, because I know what to wait, and what the price are doing combined with the predictive signals. My training hours at the beginning of my predictive technique journey paid off the investment sessions.
Juan Fernando Vega
Spanish - Support