From theory to numbers. Last session was coupled w/ the loss of 2 percent. The only to blame is the solid trade. The position that was opened on one key reason – VWAP rule.
Along w/ that, today I have extended the risk limit exactly on "VWAP rule" trades. Instead of receiving 2.5 percent maximum loss, now its possible to fix minus 5 percent on such positions. The possibility of huge drowndown have persisted already today, but I have managed to close the trade in time, so no major fund damages occurred.
Back on track, the reasons of loss are in my core approach in opening trades on the issue of "VWAP rule". It's when the market, for example, do breakout VWAP to the upside w/ new session $tick high that represents like a true confirmation of bulls superiority.
The first issue is that my $tick provider did show me different data reading. Firstly, lower high was plus 1029 and higher high was plus 1031. But then lower high was plus 1059 and higher high was plus 1054, that means no VWAP rule pattern at a place.
And the second is a $tick numbers valuation. Now, as the closing bell has rung, it's clear that lower high was plus 1029 and higher high was plus 1031, like it was initially said. But seems like it is time to correct the VWAP rule. Since now it is obvious, that:
1) I should not enter while it's VWAP rule pattern and two highs are almost equal. The market will continue to move in a direction of the VWAP breakout only when $tick higher high is more than 15-20 points higher than $tick lower high.
2) And as the session have showed up, equal $tick highs in the VWAP rule could be a nice forerunner of the bulls coming superiority and VWAP breakout to an upside, respectively.
Hour before the day finish the market again have posted VWAP rule pattern. But now $tick higher high was 1074. And previous session highest point – lower high – was only 1031 (43 points lower). And as u can see from the chart above, the rule pattern excellently realized.
Along w/ that, today I have extended the risk limit exactly on "VWAP rule" trades. Instead of receiving 2.5 percent maximum loss, now its possible to fix minus 5 percent on such positions. The possibility of huge drowndown have persisted already today, but I have managed to close the trade in time, so no major fund damages occurred.
Back on track, the reasons of loss are in my core approach in opening trades on the issue of "VWAP rule". It's when the market, for example, do breakout VWAP to the upside w/ new session $tick high that represents like a true confirmation of bulls superiority.
The first issue is that my $tick provider did show me different data reading. Firstly, lower high was plus 1029 and higher high was plus 1031. But then lower high was plus 1059 and higher high was plus 1054, that means no VWAP rule pattern at a place.
And the second is a $tick numbers valuation. Now, as the closing bell has rung, it's clear that lower high was plus 1029 and higher high was plus 1031, like it was initially said. But seems like it is time to correct the VWAP rule. Since now it is obvious, that:
1) I should not enter while it's VWAP rule pattern and two highs are almost equal. The market will continue to move in a direction of the VWAP breakout only when $tick higher high is more than 15-20 points higher than $tick lower high.
2) And as the session have showed up, equal $tick highs in the VWAP rule could be a nice forerunner of the bulls coming superiority and VWAP breakout to an upside, respectively.
Hour before the day finish the market again have posted VWAP rule pattern. But now $tick higher high was 1074. And previous session highest point – lower high – was only 1031 (43 points lower). And as u can see from the chart above, the rule pattern excellently realized.
0 comments:
Post a Comment