Early Morning Range Breakouts using time and sales

[WinAtTrading]

Some great trades on 4th June.. Nice!!

ADSK - Entry 30.66, Exit 30.16, profit 50c

ALTR - Entry 32.25, Exit 32.09, profit 16c

APC - Entry 57.85, Exit 56.68, profit $1.17

BWA - Entry 65.51, Exit 64.49, profit $1.02

CBE - Entry 68.01, exit 67.26, profit 75c

DOV - entry 54.13, exit 53.36, profit 77c

EMN - entry 43.17, exit 41.91, profit $1.26c

ETN - entry 39.63, exit 38.52, profit $1.11c

HOT - entry 48.80, exit 47.77, profit $1.07

NE - entry 30.08, exit 29.57, profit 51c

PH - entry 77.54, exit 76.12, profit $1.42c

PLL - entry 54.03, exit 53.31, profit 73c

ROK - entry 67.46, exit 66.36, profit $1.10c

SBUX - entry 52.44, exit 53.61, profit $1.17c

As you can see, this would have been an amazing trading day and if you had only taken a few of these possible trades, potential profit where at least $3 - $4 per share. Trading 1000 share approximately $4000 before commissions.

 

[robocop]

AUXL Short 1600 @ 22.04
Stop @ 22.16

 

[robocop]

AUXL Short 1600 @ 22.04
Stop @ 22.16

Stopped out 22.17

 

[robocop]

@wintattrading, nice trades you posted!

Did you traded these for real?

Today is also an awesome day, there isn't one erbo for me left...

Robocop

 

[robocop]

What have I done?

Buying a AEX put 5 jun 2012 283 at € 1.30 instead of a call at 13:40 (local time)

My timing was perfect so the put is a loss in a blink of an eye.
I've decided to hold it, maybe it was a good (but too early entry) after all.

It is now trading at € 1.00. I have a placed a sell order at € 2.00.

Why did I trade this option, while I am learning tho trade breakouts of US stocks?
argh...

The put expired worthless, making me a loss of € 130. I think I should have sold it immidiatly or at the end of the session yesterday (it closed that day at € 1.40).

 

[robocop]

I'm thinking of changing my stoploss rules which I mentioned in my first post.

Physical Stoploss: stoploss order previous high or low of
last two major waves
Mental stoploss: break of EMA(10) or other good
reason to get out (such as bailing out if breakout does not occur as
expected)

I've looked at all the trades I've made in this thread and concludes that if the setup is working out as planned it should never gets lower then the low of the bar which broke the high of the early morning range. In a short position the reverse.

For a long position, I am going to set my stoploss at the low of the bar which breaks the morning range to the upside.

For a short position, I am going to set my stoploss at the high of the bar which breaks the morning range to the downside.

See image for an example calculation.



If the stop is hit I consider the setup as failed. It is possible that the price turnaround, but it will be a tougher ride.

My position sizeing strategy changes too. The difference between the high of the morning range and the the low of the bar which breaks the morning range is used to calculate my position size. I still use the $200 fixed risk per trade for now, but I hope I can lower this to $50 and still have a reasonable position size to make regular profits.

Hope this new stoploss method make sense.

 

[robocop]

SWKS Long 2000 @ 28.08
Stop @ 27.98

 

[robocop]

SWKS Long 2000 @ 28.08
Stop @ 27.98

Out @ 28.18

 

[robocop]

BMC Long 1000 43.49
Stop @ 43.46

 

[robocop]

BMC Long 1000 43.49
Stop @ 43.46

Out @ 43.64

 

[robocop]

Daysummary







Didn't had much time to trade all day, so found these trades in the afternoon.

I've tried to use use my new stoploss technique. Set the stop to the new location wasn't really a problem. The problem is to calculate position size in realtime and the sky high commision costs involved.

Look at the tradesummary. The left side are my actual paper trades and on the right side these trades with calculated position size. Now note that if the risk is 3 ct (which i had with BMC), the position size would be 6700 shares. First can you get 6700 shares that fast for that price? Second the commision costs are $268 which is far more than my inital risk of $ 200 per trade.

The net profit is now distorted by the huge commission costs. More realistic commision costs should be $ 120 (IG Markes rate). With Interactive Brokers these commisions are a lot less, but you're account has much bigger.

SWKS - Good entry, exit could be better, but the stock failed to stay in the initiated trend. After this pull back the trend shoot up again.
BMC - Good entry, but this wasn't an early range breakout. Maybe I should call this a Daily Range Breakout or whatever. At the time of entry BMC had a very tiny range. Lovely trade because I only have to be 10 minutes in the market.

Good day to be daytrading.

 

[WinAtTrading]

Daysummary


Didn't had much time to trade all day, so found these trades in the afternoon.

I've tried to use use my new stoploss technique. Set the stop to the new location wasn't really a problem. The problem is to calculate position size in realtime and the sky high commision costs involved.

Look at the tradesummary. The left side are my actual paper trades and on the right side these trades with calculated position size. Now note that if the risk is 3 ct (which i had with BMC), the position size would be 6700 shares. First can you get 6700 shares that fast for that price? Second the commision costs are $268 which is far more than my inital risk of $ 200 per trade.

The net profit is now distorted by the huge commission costs. More realistic commision costs should be $ 120 (IG Markes rate). With Interactive Brokers these commisions are a lot less, but you're account has much bigger.

SWKS - Good entry, exit could be better, but the stock failed to stay in the initiated trend. After this pull back the trend shoot up again.
BMC - Good entry, but this wasn't an early range breakout. Maybe I should call this a Daily Range Breakout or whatever. At the time of entry BMC had a very tiny range. Lovely trade because I only have to be 10 minutes in the market.

Good day to be daytrading.

Robocop,

Definitely a great day to be day-trading.

Here are some stocks that did well on a daytrading opening range breakouts.

HD, GOLD, APC, KMB, YUM, MAT, PXD, XOM, APOL, INFY, PRU, CHKP, LH, NTAP, ORLY, SO, JPM, HAR, TDC, WFM, ADP, CHRW, EBAY, BMC.

Winattrading

 

[robocop]

Robocop,

Definitely a great day to be day-trading.

Here are some stocks that did well on a daytrading opening range breakouts.

HD, GOLD, APC, KMB, YUM, MAT, PXD, XOM, APOL, INFY, PRU, CHKP, LH, NTAP, ORLY, SO, JPM, HAR, TDC, WFM, ADP, CHRW, EBAY, BMC.

Winattrading

I see you trade both NYSE and NASDAQ stocks. Are breakouts work equally well in both markets? Or are there any differences? Some say that NYSE is more trending, but this could be an effect of the delayed order execution, which means bad fills and a trending chart.

Today the following Nasdaq stocks did well with this strategy:
GOLD, DECK (but you have to be quick), DGIT, SGEN, EXPD, APOL, SWKS, CAVM, INTU (in afternoon), NTAP, PANL, ROST, AMGN, INFY, APKT, INFA, BMRN, CHRW, KLAC, GPOR, ACOM (if you are real quick), TIBX, FSLR

Lots of opportunity this week.

 

[robocop]

Didn't trade today, but here a list of stocks that should have worked.

ACOM, VRA, MAKO (in afternoon), ESRX, SDNK, SWKS (afternoon), QCOM, EBAY, GPOR, GMCR, GRMN, FAST,

Higher ATR stocks:
PCYC, ONXX

 

[robocop]

Equity curve

I was wondering what the difference in commission costs will do with my equity curve.

I have added the Interactive Brokers commission flate rate of $ 0.005 per share, 1$ minimum per order and maximum of 0.5% of trade value to my previously posted equity curve.

http://individuals.interactivebrokers.com/en/p.php?f=commission

Note that this is makes a huge difference. The IB commissions are a lot less than IG Markets, therefore follow my equity curve without commissions much better.



It pays to save up enough capital to meet the minimum requirements of IB before starting this system.

 

[robocop]

Momentum list I am going to use for the upcoming week.



On the low of the list (which dropped of the screen is GPOR - Gulfport energy).

This list is manually selected by looking at a promising backtested equity curve of the last several weeks.

My goal for this week is to use my new stoploss rule and try to find a way to quickly calculate the position size accordingly.

 

[robocop]

AMGN Short 800 @ 68.40
Stop @ 68.40

 

[robocop]

AMGN Short 800 @ 68.40
Stop @ 68.40

Stopped out @ 68.49 (did go directly in profit after entering the trade, but reversed in the next 5 minutes)

 

[robocop]

SBUX Short 600 @ 53.46
Stop @ 53.58

Directly stopped out by one trade above that stop.

New entry short @ 53.42
Stop @ 53.64

 

[robocop]

AKAM Short 900 @ 29.95
Stop @ 30.13