Daily Report Card 06012020

My week­ly goal

Only take trades when there are at least 4 con­flu­ences. Trade loca­tion. Mar­ket Pro­file. Price action con­fir­ma­tion. Fol­low hard entry and exit rules.

Good Pre-mar­ket routines

BAD Ses­sion PECS

Okay Trade selection

Good Trade Exe­cu­tion & Mgmt.

Good Risk Adjust­ed Returns

Yes Dai­ly review

Mup­pet meter (1 being best — 5 being worst): 2

Sum­ma­ry: Return to Val­ue day

• Lon­don open below value
• H4 DBD poten­tial, M5 show­ing bull engulf at IB range low
• Sell stop 1.36703 in case of a con­tin­u­a­tion down, because of open below val­ue and H4 DBD potential
• Long entry 1.37149 SL 1.36927 TP 1.37550
  • Rea­sons for tak­ing the trade: : Lon­don open below Val­ue, high momen­tum up after bull engulf M5 retrac­ing all of IB, IB exten­sion up
  • A bit of a risky trade because of going against sen­ti­ment so will active­ly man­age the trade by mon­i­tor­ing TPO close back into IB
  • Price just reen­tered IB dur­ing D after form­ing a doji on M5 and M15 but no TPO close yet so no soft stop
  • After a M15 con­sol­i­da­tion and bear engulf I decid­ed to take the trade off (-0.2R)  and went short
• Short entry 1.37084 SL 1.37384 (above .35) TP 1.36738 (just with­in IB)
  • Exhaus­tion of ADR, rejec­tion of PVAL, M15 con­sol­i­da­tion at his lev­el with bear engulf finisher
  • Price has trad­ed against me and moved over M30 VWAP
  • No HHs (only G went over a lit­tle cre­at­ing a small sell­ing tail) and TPO struc­ture built above IB range
  • Decid­ed to extend by half an hour due to crude hav­ing made a move (and its cor­re­la­tion to USDCAD)
  • Man­u­al­ly took the trade off time-based at ‑0.3R

How accu­rate was my assess­ment of mar­ket context?

•  Good

How did I feel before, dur­ing, and after the trade?

• Before tak­ing the trade I felt good
• Dur­ing the trade after see­ing low­er time frame price action I start­ed los­ing con­fi­dence in the trade but stayed with it because I want­ed to have a valid stop based on trade man­age­ment or a time-based stop
• After­wards I feel good. I took a shot and it didn’t pan out and min­i­mized my loss­es by active­ly man­ag­ing my trades. 

How well did I fol­low my process?

• Well 

How well did I man­age my phys­i­cal, emo­tion­al and cog­ni­tive states?

• Wasn’t too ener­gized today due to lack of sleep. I had tak­en a nap think­ing it would help but I still felt ‘slow­er’ today. Ear­ly to bed tonight and back stronger tomorrow. 
• Hav­ing said that I feel I did well fol­low­ing my process and trad­ing rules

What did I learn today?

• I learned that going against intra­day sen­ti­ment is risky espe­cial­ly when open is still rel­a­tive­ly close to val­ue. Even then, to go long, I would need val­ue accep­tance before enter­ing to have a more prob­a­bilis­tic loca­tion and thus entry. Oth­er­wise today the play to have aimed for was the return to val­ue with rejec­tion coin­cid­ing with ses­sion exhaus­tion backed with price action confirmation
• I’ve added rel­a­tive loca­tion to val­ue as part of my process plan
• I also learned that two nights of lack of sleep in a row has more impact than I can rem­e­dy with tak­ing a nap in the afternoon.

What’s one thing I need to do more often?

•  Fol­low my rules regard­less of being in top shape or not. Calm seas don’t make good sailors. I feel I did well here. 

What’s one thing I need to do less often?

• Sleep less than my min­i­mum amount for two or more days in a row

For my trade plan(s) on this par­tic­u­lar day, go here:

Pre­mar­ket Prep USDCAD 06012020

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