Analysis of my trade today, Feb. 3, 2010, and staying out sitting on hands and slippage on stop out.
Divergent markets. NQ started out in an uptrend, ES in a downtrend. I did short NQ at 10:15am but saw quickly that it was highly volatile there and I advanced my stop to break even plus 3 ticks, and it bounced around so much that I even got slipped for a tick and ended up with only a gain of 2, which after fees is $5.00. That was my only trade for the day.
I. Box shows peak near open with highly volatile wide ranging bars and my short
II. Is the Higher high on NQ confirming uptrend at that point
III. Is the Lower High showing potential downtrend in ES
VI. Is the double line where the high of the day was at the time where ES started to form a short term uptrend
V. Is a confirmation of ES uptrend that would make sense to trade NQ long, except for the fact that NQ was at the high of the day at that point and also being around 12:45pm, I was not going to trade during lunch where there is rarely any follow thru, I had enough problems already.
IV. is the confirmation of the higher high on ES turning around the prior downtrend.
VII. Is the zoom in on the tiny trade gain from shorting, this is barely visible so I am showing it on the 100tick chart, NOTE the action all occurring within one minute, and the fast action I took to stop the trade from going negative as it did immediately after my advance of stop loss and getting the slipped fill.
VIII. shows the orders screen from TradeStation and the one tick slippage along with the original stop of 1776.75 that was advanced to 1774.00 as well as the automatic cancellation of the 1771.75 original target. (OCO)