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Hiltzy

John's High-of-Day Break Trades

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48 minutes ago, Daniel Lee said:

Hi John - I'm a new member.  Thanks for posting the PDF of your HOD strategy.  In it, you make reference to "R" and "1R."  From the context of the slides, I'm guessing that "R" is profit.  What is 1R?

Many thanks!

bosDan

"R" is a way of measuring risk and profit. Most good traders risk the SAME amount of money on each trade. Let's say it's $20. So  on a long trade you set your stop such that if the price drops to your stop, you lose $20. That loss of $20 is called a 1R loss. Conversely, if your trade works out and you make $40, that is referred to as a 2R gain. Your R will also determine how many shares you can buy. If your stop is $0.10 from your entry, then you will be able to buy 200 shares because $20/$0.10 = 200.

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My best and worst HOD break trades from August 6th, 2020

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Hi John,

Sorry, hit the wrong button above. I will try to figure out how to delete the re-post. Anyway, great webinar last night! Not only am I impressed on your discipline to trade only one strategy, but I am really compelled by the insights that you gained that can be applied to trading in general. Anyway, I cannot remember if you mentioned this last night or not, but do you have a minimum RVOL threshold for this strategy? You mention here that MSFT was only at ~50% RVOL and based on the chart it seemed to have a little trouble getting started which stopped you out, but then it still looks like it ran up a whole dollar. I understand the grouping of pricing levels that seemed to compel you to take the trade anyway, but without the “ideal” HOD setup, would you have taken the trade due to the low RVOL?

Thanks for any insight you can give!

Chris (freekasch)

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6 minutes ago, freekasch said:

Hi John,

Sorry, hit the wrong button above. I will try to figure out how to delete the re-post. Anyway, great webinar last night! Not only am I impressed on your discipline to trade only one strategy, but I am really compelled by the insights that you gained that can be applied to trading in general. Anyway, I cannot remember if you mentioned this last night or not, but do you have a minimum RVOL threshold for this strategy? You mention here that MSFT was only at ~50% RVOL and based on the chart it seemed to have a little trouble getting started which stopped you out, but then it still looks like it ran up a whole dollar. I understand the grouping of pricing levels that seemed to compel you to take the trade anyway, but without the “ideal” HOD setup, would you have taken the trade due to the low RVOL?

Thanks for any insight you can give!

Chris (freekasch)

This is a good question. Quick answer is that I do not currently have a minimum RVOL number. RVOL can be a tricky metric because if a stock has HUGE volume for a few days, then the RVOL in later days might seem "low". But there might still be sufficient volume to provide good moves. Lately I am more about is there good volume for the day based on the price. Good volume for a $500 stock at 30 minutes after the open might be 800,000 shares. Whereas good volume on a $15 stock at the same time might be 2M shares.  It seems to comes down to "is there enough volume to move the stock somewhat predictably?". And that takes observation over time. Lots of screen time. 

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My best and worst HOD break trades from August 7th, 2020

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Worst_Best_Trades (new logo) (36).png

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My best and worst HOD break trades from August 10th, 2020

 

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My best and worst HOD break trades from August 11th, 2020

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My best and worst HOD break trades from August 12th, 2020

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My best and worst HOD break trades from August 13th, 2020

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Posted (edited)

My best and worst HOD break trades from August 17th, 2020

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Edited by Hiltzy

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Hi John, Just started BBT last week and have been reading non stop.

In this post, you mention you always use a hard stop. This is something I have problems with.

Do you place the hard stop after entry or at the same time? If it's at the same time, how did you set up the order?

Thanks for the information you've been sharing, it's a great help.

Thanks, Kevin

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Kevin,

I am using mental stops mostly right now but ONLY because I felt like I had reached a point where I could handle it. When I was turning around my trading career and starting to find consistency, I HAD to use hard stops. It was the only way. So please use them. They will save your account.

I used a hot key script where I would click on the chart where I wanted my stop. Then I hit the hot key and it automatically purchased the amount of shares I could get with my risk amount ($20 when I started) and the distance between entry and stop.

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My best and worst HOD break trades from August 18th, 2020

 

Worst_Best_Trades (new logo) (49).png

Worst_Best_Trades (new logo) (50).png

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