March 6th, 2012: Net $72 Profit on 3 Trades today on a tough trading day overall

Hello Traders,

Today was a rather tough trading day overall, and a little bit of a trick on the initial entry.  Normally I look for a bar that is over 389 to initiate a trading sequence.  At the time of the trade, I thought it read 389, but in fact it read 447 I believe on revisited it today.  I am not sure at this point in time if I saw one thing, and it changed or I simply didn’t read the right number in the first place in volume.

With that being said, I started the trading day in the with a loss of 25 ticks on the first trade, the 2nd trade was a breakeven plus a tick, and the last trade on the day I was able to net 34 ticks to net an overall gain of 9 ticks on 3 trades.  After commission costs at $6 per round turn all-in on 3 trades, this is $18.  So 9 ticks times $10 per tick equals $90 – $18 = $72 on the trading day net gain on one contract trading.

The winning trade was the 4th time approaching the trend line and I went short back to the LADR (Lower Average Daily Range) on the trading day.  After going green on my trading day, I then placed myself on the sidelines as I didn’t see anything of note to jump in and we were in a non-trending day overall, in my humble opinion.

Here is a chart I saved on the trading day.  It represents a 2000 trades/ticks chart at the time when we broke through the trend line drawn on the chart:  March 6th, 2012 2000 Trades Chart

This is a W.D. Gann principle that the market has a tendency to break through more often approaching the 4th time a the relative same level.  What this means to me is the same as approaching the trend line for the 4th time.  You will note the orange arrows showing each time we approached the trend line.  I went short on the winning trade at 105.11 and out at 104.77.

Good Trading,

David “Tiger” Knight

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.