The following information is for educational and entertainment purposes only. Rio Verde Trading and the author make no claim that anyone can or will achieve similar results in their trading
IWM Setup of October 12 was confirmed on Friday October 13.
October 13: bought to open 70 IWM at 149.53, net $10,469.10.
October 16: Sell signal, sold to close 70 IWM at 149.39, net $10455.30.
Net Loss: $-13.80; ROI -0.5%.
The IWM sell signal was a false signal, I should have added 70 IWM as a continued buy signal. Therefore the morning of October 17 I bought 70 IWM as a continuation of the original trade. See comments below for a better explanation.
October 17: At the market open, bought to open 70 IWM at 189.22, net $10,446.46.
October 17: Buy signal at the close bought 70 IWM at 148.90, net $10,425.00.
October 18: Sell signal, sold to close 140 IWM at 149.52, net $ 20,930.40.
Net Profit: $59.34, ROI 2.25%
Net Profit From Combined Trades: $45.54, ROI 1.73%
Comments: This trade needs a little explanation. The buy and sell signals, as explained in the 74% Solution trading manual, are based on the closing price. Occasionally, as happened on this trade, the market was trading so close to the closing price that it was hard to determine if the close would be a sell signal or a buy signal. I thought I would get a sell signal so I sold 70 IWM to close. After the market closed for real and the dust settled, the actual close was a buy signal. It was too late, of course, to buy, so I entered the trade the next morning with the opening price. That day also signaled a buy at the close so I added another 70 IWM at the close.
My sell signal for October 16 was any price above 149.37; the market as it neared the close was oscillating around that key number. As the close approached with less than a minute to go, I thought I had a good sell signal and sold. However later that evening when updating my charts, I found the official close at 149.24, a solid buy signal. So I entered the trade again the next morning at the open. From there every thing went more smoothly.
It is good to be back trading and extra nice that my first trade is profitable.