The Performance Coaches made an impressive $711.46 in their Trading Combine® today. As luck would have it, they picked the exact top tick in a Crude Oil ($CLX7) short, riding that for $460 - more than double their average profitable trade. That, combined with an earlier Crude Oil long and a small U.S. Treasury Bond trade, built up to their best single day of trading yet.
There was a lot to unpack today, so let's get to it.
There are two trades of note today - and for different reasons.
The decision that Coach Danny made to get out of the U.S. Treasury Bond long was the right one - even though he was in-the-money and it had not yet reached the profit target. Unlike Hoag - who prefers to set-it-and-forget-it tactic with trades, Danny monitors the market while he has a position on. And he saw something he didn't like in the Bond. It's hard to say what - just price action that triggered his intuition and told him the trade was wrong. That got him out, and it proved to be right - as the Bond fell more than 10 ticks from that level.
The second trade was the decision to sell Crude Oil at $51.22. The order was actually put in while Crude Oil was trading under $51. Danny was interested in fading the rally, but entry point was critical. At the time, the Coaches were up $260 on the day, and the last thing they wanted was to take a trade that put on too much risk. When it was trading under $51, there was no reason that the price wouldn't move higher. However, as the chart below shows, $51.20 was a level that had served as support for the price last week. ($CLX7 shown on the commission-free TSTrader.)
What made that level stronger was the fact that on the 30-minute bars, that level had provided enough support to leave a lower wick of 10-20 cents on all those tests. And when it broke through - on Monday - the price quickly fell to $50.60 in the next few hours. Given the evidence, that provided a good risk-reward entry point. Fortunately, the trade also worked out.
Lest you think Danny is a market genius, we should remind you that the decision to sell Crude at the exact high versus put the order at $51.23 (which wouldn't have been filled) or $51.20, which would've been two cents off the high, was pure luck - so don't read too much into that.
Here's how we reported the trades on Twitter (@topsteptrader) using #CoachesCombine:
*That last tweet should have been profits of $660 in Crude Oil alone - there was gains of $62.50 in the bonds as well.
Total performance for the day, including fees and commissions: $711.46. Balance is $49,351.76. For more, check out their Trading Combine dashboard below.