Daily Analysis by TradeOmatic's team - page 2
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Summary of Profitable Month, December 2013
Hello everyone, hope that you all benefit from our posts of last months. We are about to conclude the results that we posted last month. Fortunately (or as we planned?), most of our trade setups hit its target, and some are on the way. Congratulation to any of you who traded successfully our posted setups.
However, we do have 2 successful recalls before those orders executed. We don’t consider these recalls as losses. Since we use pending entry to catch the market when it comes to our direction, these orders were cancel before it hit our stop entry level. If you are not sure about how to use pending entry, read Steps to manage a good trade and see how it psychologically saves you from running loss.
Alright, the first chart that we posted on 11/12/2013 is BDC. Running days of the trade are 16 days, and profit is 6.9%. This was the first chart we posted, so we received a lot of similar questions regarding how to enter with pending and how to take profit with our posted settings. For those of you who have similar questions, please read our post Steps to manage a good trade.
Profitable BDC Chart
Day of Trade: 16
Profit: 6.9%
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DFS chart posted on 11/14/2013 hit its target as well. Days of running trade – 19. This trade captured only 3.12% of the trading capital as profit.
- Day of Trade: 19
- Profit: 3.12%
Profitable DFS chart
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GPI we posted on 11/14/2013 was recalled because our scanner a day after show that this chart is no longer in good shape. We recalled the chart before it could be executed. And again, at this point, pending entry saved us this potential loss. Trading is a game of probability. But, a trader, a gamer, with greed and fear is hard to profit because basically he is easily suffered from psychological damage in running loss. Pending entries and recalling orders when we know it’s wrong help us stay away from running loss.
So, either cut the loss early, or recall it when you still have a chance.
Setup cancel because Sell stop Entry had never been filled
Recalled GPI Chart
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Similar to GPI, CACH chart order was recalled one day after it posted. Cutting loss early or recalling order before it goes loss help you preserve the cash for other trades.
Setup cancel because Buy stop Entry had never been filled
Recalled CACH chart
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The last chart of last month is PAM, posted on 11/19/2013 won big with 17.94% within 12 days in trade. PAM jumped up immediately after the day we post our notification on our blog. Price made wide spreads and hit up to the level 3 Stoploss. If you follow the rules that we post, you should be in profitable mode right now roughly 20% of your trading capital.
- Day of Trade: 12
- Profit: 17.94%
Profitable PAM chart
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Last month, we post more than the charts above. Those charts such as LSI, GDOT, MDR, VRTS are on its way to hit its target. If you have been in those trades, you should adjust your Stoploss levels according to our information posted at the bottom of each trade setup.
For the results of these running charts, we will have another trading summary next month. Briefly, here are the statuses of those charts
LSI: in ranging, it might hit your SL, but still in profit.
GDOT: in a nice down move
MDR: in a nice up move
VRTS: in a nice up move
In conclusion, we are in profitable zone as of this month with the current approach. Our current approach is to analyze statistically over 3000 charts history data. We use ScoreOmatic, which is one of our proprietary scoring engine, to rank the setups by numeric value. The better score, the higher probability the trade is.
In addition, we use Bayesian inference to show the probability of winning each trade. We tested on out-of-sample data, and it’s profitable and tradable. We do have the numbers and out-of-sample results backup for our methods.
Most of the charts we posted last month were automatically analyzed by our application, TradeOmatic, purely with Elliot Wave analysis. Recently, we successfully brought in the Wyckoff Supply & Demand Analysis (SDA) to shed the light on the EM-1 setups (our current Elliot Wave setups). We strongly believe that with the help of SDA, it will help TradeOmatic recognize the imbalance of Supply & Demand in the background of the chart. Background will not and cannot be changed. Most of the time, as we statistically analyzed, ANY setups with handsome Wyckoff SDA background have very high probability of winning. And our team is going to offer the tool that can help you to spot these backgrounds and trade setups automatically.
Stay tuned!
Wyckoff + Elliot Wave is possibly the best combination. Good job
good Analysis