What/when I traded: 15 SPY 557P contracts @ 12:11:05 (est)
Reason for entering trade:
SPX had closed below the 5601 ATR and had just fully closed below the whole psych 5600 on the 1 minute time frame. Additionally, SPY 15 minute candle was in overbought territory. Volume was low, though it was low all day so it looked like another potential slow grind up kind of day too. Buyers were more aggressive than sellers, which generally invalidates the trade, but with the whole psych + ATR nearby I thought it was a high probability trade for a reversal, even if it didn't pan out.
Exit plan:
Cut if SPX 5 minute candle closes above the 5601 ATR. If not, trim/sell at the 5586 SPX ATR.
Where I sold:
I ended up selling when the 5 minute 12:15 SPX candle closed above the 5601 ATR right around 5603. Total loss for the day $180.
I was patient with the 5600 level to hit and close below (I did not even think about getting in early with the low volume throughout the day, so that was a step in the right direction). Also, looking back, today was not the day to add more contracts. If anything, I should have done half my usual position with the low volume. Paid some tuition today, but back at it tomorrow!
|