The perfect Storm of a trade⛈

Sugar, Spice and Everything Nice - and a little bit of Chemical X!!!

It feels so good when things just line up perfectly doesn’t it? It almost as if the universe moves out of your way so that you can get your shit done effectively, Let’s take a look at one such example.

⚡️ What’s in this read for you?

• A perfect Storm

• Finding your footing

• Changing Strategies?

• Some humor as usual (memes, jokes etc)

What’s up guys, Brandon here again. Today I want to discuss with you a trade from a random user of the Hero Ecosystem, Arun. I haven’t ever worked with Arun so this information is just as new to me as it is to you, Let’s take a look at what happened.

📊 The Trade

This is a very healthy decision map from the perspective of majority of Arun’s decisions were pretty good. Yes, he made mistakes but really and truly it doesn’t need to be perfect. Let’s be real, it’s rare that it will be perfect, especially when you are still learning.

🔍 The Data:

• Asset: CADCHF

• Entry Price: 0.67019

• Execution: Market Execution (Sell)

• Risk Percentage: 2%

• Reward Percentage: 6%

• Stop Loss Price: 0.67319

• Stop Loss: 30 Pips

• Take Profit Price: 0.66119 (90 Pips)

• Exit Price: 0.66119

• Closing Pip Count: Plus 90 Pips

• Money Made\Lost: $225.00

• Market Direction: Bearish

• Trader’s Directional Bias: Bearish

• Time Spent on Analysis: 20 Minutes

• Timeframes Observed: 15 Minute

✅❌ Outcome

• Result: Win of $225.00 USD

• Opened: 9:45 AM Wednesday 3 April, 2024

• Closed: 5:00 PM Sunday 14 April, 2024

• Duration: 8 Days, 8 Hours

📰 The Good:
Total Good Decisions: 26

• Normally trades this asset

• His directional bias is aligned with the market direction

• He didn’t take this trade as revenge for a previously lost trade

• He didn’t take this trade near a news event

• He changed his strategy from one he realized wasn’t working for him

• He felt high levels of confidence going into the trade

• He placed much more importance on the elements of the trade

• He gave those elements the attention they deserve

• He didn’t think this trade was a lot of work

• He wasn’t influenced externally

• He spent a little longer on this analysis than normal

• He kept his bearish bias

• He was pretty confident this trade would win

• He wants to see improvement in the duration of his trades

• He analyzed this trade on his computer

• He rated this trade 5/5 stars

☠️ The Bad: 
Total Bad Decisions: 5

• Arun risked 2% of his account

• He dealt with about 20 Pips of drawdown (66% of his total risk)

• Arun doesn’t normally enter trades at this time

• Arun changed his strategy

• Arun only understands this strategy 4/10

🧠 My Thoughts: 

I like the idea that he changed his strategy to one that works for him, BUT my question (one Arun couldn’t answer) is - what made him change his strategy. What I’d hate to think is he just changed his strategy randomly.

You are welcome to change your strategy at anytime BUT if you should do so, that decision should be based on some level of substantial data.

🎉 Some tips

😉Following A strategy

Obviously we want to have a set of rules to guide our decisions, but you get to define these rules based on what exactly you want to see. There is NO right or wrong way to do this people. Pick a strategy and follow it, while data logging (using a journal) and only when the journal gives you conducive data that this strategy isn’t working then can you change it.

🔝Over Risk

2% risk is still way to much. Hell, 1% is too much, especially for someone who is changing strategies, let’s be honest. I personally advise 0.50% for semi experienced traders and 0.25% for beginners.

👍🏼Good Decisions

100% of what we do is decision based, this is why 2 completely different traders can look at the exact same set up and have vastly different results. It’s because we have to take into account what decisions we allow ourselves to make.

🕔Entering Trades at a certain time

Contrary to popular belief, I believe you can enter trades at pretty much anytime, the only reason my App captures data on when you enter the trade is to see if there are any patterns. Really and truly however I don’t think they is any adverse effect in changing the time you enter the trade.

You should enter trades when the opportunity presents itself, not when YOU CHOOSE TO TRADE. Unfortunately it doesn’t work like that.

🔚 Conclusion

⭐️ Final Verdict

Trader’s Rating: ⭐️⭐️⭐️⭐️⭐️
My Rating: ⭐️⭐️⭐️⭐️

Personally due to Arun’s Risk % I don’t want to give him 5 stars, I’d give him 4 stars. I like everything about this trade minus the risk. Other than that, we should try to model this trade and the way he approached most of his decision making. Keep it up Arun, But sort out your risk lol

Happy Trading,
Brandon | Signaled

💪🏻 Something for you: Was there anything that stood out for you within this edition of the signaled newsletter? Reply to me, I just might respond ;)
 &
✍🏻 Something for me: How was my writing, how was the structure, what could I improve on to make this better for you? Again Reply to me, no hard feelings - give it to me good!

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