Patience, Patience and More Patience

There are a number of ways of trading. One way is to trade anything that looks like a trade, another is to pick the high win rate pictures and be patient until they arrive. Its a matter of how "tight" you want to play, to use a poker expression.

You can trade, say, 30 times a day with large size looking for a small average profit per trade to make you green for the day. Or you can aim for surer trades and hit it with a bit of size and make an emerald green day. Both styles are valid but making a conscious decision which one to trade is important so you know how to create your TP. The pic below show some of my more patient trades today. Look at the pictures to see the elements that make them a high win rate picture.

The TradeStation chart below shows a sequence of those "surer" trades. The market broke at the first trade and allowed me to trade a whole series of pullbacks until the market became oversold - see the 135CCI, below -200. That was my signal that I had to wait for a new picture. Maybe there can be more trades after that oversold but they cease to be "sure" (high probability = high win rate) trades and my TP meant I had to pass on them. There are enough trades every day so I don't need to be impatient. When I translate that trading plan into an algo, I transfer those same rules and require the pullback entry to be filtered out if the market is oversold or overbought.