Working on my Mountain Pass Strategy

[Nicolas Soutelo 0]

Hey BBT! First time here on the forums so please excuse me for not knowing how to use it properly.
 

For a little over a month now I have been exclusively trading Peter’s MPS. I am attempting to work out the kinks to make myself consistent. Some of the BBT family on Twitter helped me by pointing out on a lot of the trades I take, my R:R is a little messed up. 
 

If anyone has screenshots of Mountain Passes they have taken, I would love to see where you entered, set up stops, and partial so I can compare with my own and optimize my future trades, thank you!

Edited September 16, 2020 by Nicolas Soutelo

[luke 3]

Hey, I am Lukas (we know us on Twitter). What I would suggest is that you post screenshots which show more context. 1m and 5m charts from the whole day, and maybe a daily chart. Otherwise its difficult to judge. At least for me.
 

I think its incredible important to determine whether this is only a pullback, or a failed breakout. This is why I put all my focus on volume when I trade mountain passes. 

My general rules (without entry and target rules):

• No MP on strong trend days of the SPY, as it will most likely drag the stock in its direction.
• Stock must be extended: Far away from VWAP, extended from the 9EMA in 15min chart, ...)
• The first top should show significant volume (exhausting)
• The following pullback shouldnt be too flat, but not too strong either.
• Dont take a MP if the consolidation after the first top takes too long.
• Second top should show an attempt of breaking out. The attempt should fail with low volume. Hence, breakout/ABCD/... traders will give up their long position and give up -> our entry
• Bonus if first top reached a resistance level
• General rules: high RVOL, clean trading, etc. This is important as you want to see that a lot of short term traders are involved. Traders who trade the breakout after the consolidation. You want to see them sell their long position when they notice the missing volume and give up.

Also regarding Peters Webinar. I love his strategy but I simply dont understand his examples. I think the Mountain Pass will show up way less frequent than Peter indicates in his webinar. 
He has great success with it tho. I, on the other side, just started to integrate the MP in my playbook and have not much experience yet. 

By the way, be careful trading only one strategy. This is perfect for learning and I did the same for about 2 months (different strategy tho). But what I noticed is, that I traded setups which simply did not fit. This means, that there should have been MANY days without a single trade. But thats boring and frustrating which is why I took those setups and lost money. 

 

Hope this helps! And keep posting on Twitter!

[luke 3]

Regarding more context in screenshots:
This actually is contrary to Andrews idea that you should understand a trade within 5sec after seeing the screenshot, but for analyzing a trade, most posts on twitter are just too simple IMO. 

[Nicolas Soutelo 0]

1 hour ago, luke said:

Hey, I am Lukas (we know us on Twitter). What I would suggest is that you post screenshots which show more context. 1m and 5m charts from the whole day, and maybe a daily chart. Otherwise its difficult to judge. At least for me.
 

I think its incredible important to determine whether this is only a pullback, or a failed breakout. This is why I put all my focus on volume when I trade mountain passes. 

My general rules (without entry and target rules):

• No MP on strong trend days of the SPY, as it will most likely drag the stock in its direction.
• Stock must be extended: Far away from VWAP, extended from the 9EMA in 15min chart, ...)
• The first top should show significant volume (exhausting)
• The following pullback shouldnt be too flat, but not too strong either.
• Dont take a MP if the consolidation after the first top takes too long.
• Second top should show an attempt of breaking out. The attempt should fail with low volume. Hence, breakout/ABCD/... traders will give up their long position and give up -> our entry
• Bonus if first top reached a resistance level
• General rules: high RVOL, clean trading, etc. This is important as you want to see that a lot of short term traders are involved. Traders who trade the breakout after the consolidation. You want to see them sell their long position when they notice the missing volume and give up.

Also regarding Peters Webinar. I love his strategy but I simply dont understand his examples. I think the Mountain Pass will show up way less frequent than Peter indicates in his webinar. 
He has great success with it tho. I, on the other side, just started to integrate the MP in my playbook and have not much experience yet. 

By the way, be careful trading only one strategy. This is perfect for learning and I did the same for about 2 months (different strategy tho). But what I noticed is, that I traded setups which simply did not fit. This means, that there should have been MANY days without a single trade. But thats boring and frustrating which is why I took those setups and lost money. 

 

Hope this helps! And keep posting on Twitter!

Hey Lukas! Thank you for the time you put into your response. I agree with all that you said.

I without a doubt force too many setups, especially on days where good MP’s do not show as often. I will definitely post more time frames, great point on that. 
 

Thank you for sharing your personal experience trading a single strategy. I am going to add HOD break into my playbook soon, I comport with what you said about taking setups that do not fit my criteria due to trading one strategy only.

Again, thank you for your help Lukas, I am so thankful to be a part of this community with people like you who. Enjoy your weekend!