Good Trades can Lose Money Too: Performance Coaches' Trading Combine

Posted by TopstepTrader on November 13, 2017

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):

Crude Oil Nov 13.jpg

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: 

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: -$371.04Balance is $50,213.11. For more, check out their Trading Combine dashboard below.

Day 50 Trading Combine.jpg

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Topics: Performance Coaching, Trading Combine, Trading Basics