Day 3 Live Funded Trader at TopStepTrader

Overall, I had 3 trades after the CL Inventory Report Release. My trading system told me to short the entry today. I attempted 3 times to get short and all 3 were losing trades on my trading day.

I went down 43 ticks on trading today and had to call it a day. In other words, live to fight (trade) another day. I am wrong on my trading setups today … and I am way too close to my Max Daily Loss of $500 to attempt any further trading.

To protect myself from myself … I close up my trading station and give the rest of the trading day to the winners that are not me on the trading day. I will get them on another trading day.

My entries were all short:

  • Short 2903 Trade Exit 2919 (-16) … 2/3R Stop Loss
  • Short 2903 Trade Exit 2919 (-16) … 2/3R Stop Loss
  • Short 2913 Trade Exit 2924 (-11) … 1/2R Stop Loss

According to my trade summary report, my max daily drawdown is ($1,245). After today, I am down $200 and change giving up my trading gains on the last two trading days. Why didn’t I quit after the first trading loss? It’s a valid question, but at the time of the trade the trading high of 2941 was holding and we had a lower high pattern allowing for a trade entry. All my volume bars were blue bar volume after the Crude Oil Inventory Report release after 10AM CST.

Here are my trading charts I collected before I closed my trading station today:

This chart and the one above I firmly believed the market was about to top out and come on down. There was no reason to believe the crude oil market had any strength to continue to drive the prices up as the blue bar volumes showed me.

In other words, trust and confidence in my trading method was what keeps me sane. In hind sight, remember you are always right … and the correct way to trade the day is always shown. But in the heat of the battle you MUST pick a side to fight on. The overwhelming evidence on the trading session told me to go short young man … but this was not to be on my trading day.

Here is where I thought I caught my trading break as we went below and looked like it was heading (or returning) back to the pivot point on the trading day. This was not to be …

Hit Stop Loss and my Trade Exit on one of my trading setups today during the crude oil futures trading session.

As I told my wife yesterday, discretion is the better part of valour. I could tell you about the trading issues with yesterday and conflicting reports showing up on the trading system. This had us at TopStepTrader unable to take a trade going into what was believed to be a mistake showing the cl inventory report … they wanted us to be flat at 9:30AM CST yesterday … so I was unable to take a trade setup that was worth 73 ticks yesterday during my trading day.

But I firmly believe, as long as I take my trading signals correctly, then I will take out more in the market than I lose overall. Keep the losses small and allow the winning trades to run. This week showed me that the 3P Profit Target is reachable before any retracement on the market.

This has me truly thinking to take out a 3P profit target on the trading day each day I am in a winning trade … and build up my capital base so I can take out my first trading withdrawal of $500 after I achieve a $2,000 trading gain on my trading account here at TopStepTrader. Yes, I am of firm belief I will reach my profit objective over the next trading days so I can achieve my first profit target trading withdrawal on my trading account.


Good Trading,

David M. Knight

P.S. Friday trading tomorrow … let’s see what develops and go for it … if a good trading signal!!

About The Author

David M. Knight

I am a 30 Year Futures and Commodities Trading Veteran. In addition, I enjoy games of skill and chance like: poker, craps, blackjack and roulette. During my professional career, I have developed and implemented successful trading strategies and methods; along with winning systems in games of skill and chance. Join with me on our mutual journey together.