I entered Long around 10:55 AM at 890.50 with a 2-pt stop and an initial 4-pt profit target. Once price moved 2 pts in my favor, I moved my stop-loss to break-even. Price then went 3 pts in my favor, at which point, it looked like I should exit the trade but I had to stick with the 4 pt target for this experiment's sake, and was exited at break-even around 11:25 AM (central).
I entered Long around 11:30 AM at 890, again with a 2 pt stop and 4 pt profit target. Once price moved 2 pts in favor, I moved the stop-loss to break-even. Price then continued and was +3.75 pts in my favor, a mere 1 tick away from my exit order. The 12:10 PM (central) candlestick signaled a reversal and I could have bailed for +3 points, but I stuck with the experiment and once again was stopped out at break-even at 12:35 PM.
I entered Long around 1:00 PM at 890.50, with a 2-pt stop and 4 pt profit target. I actually had to leave the house at this time, so put in the bracket orders for stop and profit, and left the PC. On this trade, price finally hit my profit target for +4 pts at 2:15 PM (central). The 2:20 PM candle would have signalled a short entry for me, but I wasn't at my desk.
ES (5-Min) - Trade Chart
I realize one day's price action doesn't say much, but it looks like I need to give my trades some room in the beginning. Moving stop-loss to break-even at +2 pts sounds reasonable from a risk management perspective. But then if I see a reversal signal, I also need to go ahead and exit at a profit. I easily left 3 pts on the table on my first two trades, so this could actually have been a +10 pt day in just 3 trades if I used discretion and exited the first two trades at a profit. Here's the Stats break-down:
|# of Trades||3|
|Largest Win (pts)||4.00|
|Largest Loss (pts)||0.00|
|Total Win (pts)||4.00|
|Total Loss (pts)||0.00|
|Net Gain/Loss (pts)||4.00|
|ES Daily Range||13.50|
|P/L as % of Daily Range||29.63|
We have an open gap at 899.50, and at this point, the 876-882 area has proved to be support. Lets see if that holds next week. Have a fun and safe memorial day weekend!
ES (Daily) - Zoomed In. Price made a lower high and higher low today.