You Can Make Money Short a Rising Market: Performance Coaches' Trading Combine

Posted by TopstepTrader on November 06, 2017

Crude Oil ($CLZ7) is on fire. The commodity has rallied more than $7 in a month. There are times, like today, when you don't want to step in front of it. That is, unless you have previously identified important areas of resistance and keep your stops tight. 

That's what the Performance Coaches did. Each week, Senior Performance Coach John Hoagland identifies levels in the Weekly Kickoff that could spur long-term players into the market - either as resistance levels or levels of support. 

In yesterday's email, he identified $57.60 as the Weekly Kickoff High. Today, a short of Crude at $57.60 was a penny off the high and netted the Coaches a profit of $440. When combined with an earlier losing position, the Coaches added a total of $262.64 - bringing their total balance to $50,997.41. 

Here's a look closer at that timely trade.


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Just look at this chart - Crude was on FIRE. After looking soft at the U.S. open, which took it to lows beneath $55.70, the price started to move back towards its overnight highs. When it breached them, there was no stopping Crude Oil, which hit $57.35 before taking a breather. 

Crude Oil Nov 6.jpg

It was during this first breather that the Performance Coaches entered their first short - at $57.03. The stop was put at $57.15 - however, they were filled with slippage that took $170 out of their account. 

It wasn't long before Crude was at new highs, and the Coaches put in an order to sell at the Weekly Kickoff High of $57.60. The price touched $57.61 before falling $0.40 in the next 15 minutes. That allowed the Coaches to lock in a $263 profit for the day. 

But where did $57.60 come from? The chart below - a daily chart of December Crude - shows that $57.60 contained prices back in late 2016 and early 2017. That provided the Coaches with a good risk / reward ratio for today's trade.

Crude Oil Nov 6 Daily.jpg

Here's a play-by-play update of the Coaches trades on Twitter (@topsteptrader) using #CoachesCombine: 

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: $262.64Balance is $50,997.41. For more, check out their Trading Combine dashboard below.

Trading Combine Day 45.jpg

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Topics: Performance Coaching, Trading Combine, Trading Basics