The Performance Coaches gave back $370 in their Trading Combine® challenge today after they were stopped out twice on Crude Oil longs. The second was perhaps the most painful - as the Coaches were stopped $0.01 above the daily low.
That is painful. But objectively (and discounting the $150 they lost), it was a good trade. Perhaps $0.02 too early - but it was a valid trade.
Here's why.
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Here's Crude Oil trading on a 15-minute chart (as seen on the commission-free TSTrader):
The orange line is the prior week's low - $56.40. The Coaches saw that level, expected support and wanted to get in the trade on the long side. So, they bought a contract at $46.46. The stop was $0.15 away with the assumption that more buyers would come in as the price hit $46.40. That didn't happen.
Instead, the price quickly fell below $46.40 to hit $46.30, which proved to be the low of the day. After that, it didn't take long before the price rallied to $46.80 as buyers did in fact come in.
But entering a trade at or near the prior week's low is a valid trade. Those are levels that one would expect others to be watching - and buying above.
After those $320 in losses, the Coaches entered one more trade in Crude Oil - buying at $56.75. The price, however, stalled, and the Coaches got out of the trade for a $40 loss.
Here's a play-by-play update of the Coaches trades on Twitter (@topsteptrader) using #CoachesCombine:
Performance Coaches took some losses on that $CL_F decline. Went long at $56.85, stopped at $56.68. Long again at $56.46, stopped at $56.31. Down $320 on day. #CoachesCombine
— TopstepTrader (@TopstepTrader) November 13, 2017
Performance Coaches long $CL_F at $56.75. Stop at $56.60. #CoachesCombine
— TopstepTrader (@TopstepTrader) November 13, 2017
Performance Coaches out long $CL_F for $40 loss. #CoachesCombine
— TopstepTrader (@TopstepTrader) November 13, 2017
As a reminder, trades are not recommendations and we do delay the Twitter feed by 15 minutes.
Total performance for the day, including fees and commissions: -$371.04. Balance is $50,213.11. For more, check out their Trading Combine dashboard below.
