Trade Journal - DRIP, Feb 6 (long)

6 февр. 2023 г.

Thesis
Crossed baseline recently, CLAMP is yellow (positive), correlation agrees.

Discovery
After entering a trade with BTB, I saw it correlated negatively to XOP, the oil and gas exploration etf. DRIP is a leveraged play on this symbol.

Correlation
+: BTB, XAGUSD, VIX
-: RUBUSD, XOP, UUUU

Because we entered this symbol due to XOP correlation from BTB, there may be overlapping risk on this trade.

Entry
+161 @ 14.81 (0.00 fee)
TP: -80 @ 15.70
SL: -161 @ 13.54

8 февр. 2023 г.

Сделка закрыта: достигнута стоп-лосс цена

Got stopped out. Daily low was reported to be 13.54, exactly what my SL value was.

Very disappointing - tomorrow will probably have a large retrace back upward now that I've been shaken out. However, it's not worth entering the trade again because my signals do not indicate to do so. Revenge trading is never worth it.

One point to remember is that I entered two bars after the baseline was crossed. We should consider the "one bar rule". At the very least, price had moved much higher by the time we entered the trade, so we should have some kind of rule like "you can wait to enter, but it must never move past 1x ATR from the baseline" or something.

8 февр. 2023 г.

Заметка

While O&G producers should move independently of the commodity prices, USO entered a short confirmation on Jan 30th, then trended downwards for a while. The salient point is that the oil price retraced back upwards today, which could have accounted for the loss on this trade.