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.
January 11: A buy set-up on January 10 was confirmed today. Bought to open 30 IWM at 103.45.
January 12: Buy signal continues. Bought an additional 30 IWM at 103.32.
January 13: Sell signal confirmed. Sold to clos 60 IWM at 103.85.
Net Profit $21.90, ROI 0.7%.
This is probably one of the most unusual trades I have made. Buy and sell signals are determined by the closing price. Therefore all trades are made at the end of the day very close to the market close while based on the close. Normally it is very clear what the close will be allowing me to make a trade before the close. Yesterday, January 12, as the close approached the market action was oscillating repeatedly from a buy to a sell back to buy signal. 30 seconds before close I appeared to have a solid buy signal at 103.32. Immediately after my order was filled the market spiked up to 103.71, which would have been a sell signal. At the same time the bid ask price was still at 103.32 to 103.33, a buy signal. It was to late to reverse my buy order which had already been filled.
Because of the crazy action at the close I thought maybe it was just a mistake. That evening, from several sources, I checked market closing price for IWM and confirmed that 103.71 was the correct closing price, which was a sell signal.
This morning in after hours trading I sold my entire position of IWM at 103.85 closing out my position and actually gave me a better price than yesterdays close.
The markets are now closed, IWM made a nice rally, allowing me to close my trade at a profit, then sold off and closed at 100.38.
As frustrating as this trade was, I still closed it out at a profit. The thing to remember is , that for traders, volatility is our friend. Volatility is one of the reasons this trading strategy historically performs best in bear markets. You will have to buy my trading manual, The 74% Solution, to find out the other reasons.