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Want to Know What a Perfect Setup Is? Here You Go: Performance Coaches' Trading Combine

Posted by TopstepTrader on October 25, 2017

The Performance Coaches capitalized on some of the volatility in futures markets to make another $421.32 in their Trading Combine® challenge today, bringing their balance to $50,888.65 - roughly one third of their way to their profit target.

Today's trade was a perfect setup in the Emini S&P 500 ($ESZ7) - let's break it down.  

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The chart below is a 30-minute chart of the Emini S&P, as seen on TSTrader, our commission-free trading platform. 

ES Chart 10-25.jpg

As you can see in the trade, there were two factors that caused the Coaches to view the move lower as a breakout. First, there is the downward sloping trend line that has capped any rallies over the past two days since the Emini S&P made fresh all-time highs. The second was that it was breakig below a prior level of resistance (the red horizontal line). Since that level provided support yesterday and early today, breaking down should encourage more selling. 

In fact, the price did break down. 

While the Coaches sold out too early compared with the magnitude of the move (hindsight is 20/20), they were able to take a more than 4:1 reward to risk ratio out of the trade. When given that - particularly in a counter trend trade - you have to take it. This may be why there was such a strong bounce when the price hit the October 19th low and met aggressive buying. 

The rest of the day, the Coaches had a couple orders in, but did not get filled. They're happy to leave the day up $425 and near $51,000 in balance.

If you want to follow the Coaches' trades on Twitter (@topsteptrader), you can use #CoachesCombine. Here's how we reported them today. 

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: $421.32Balance is $50,888.65. For more, check out their Trading Combine dashboard below.

Day 37 Trading Combine.jpg

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Topics: Performance Coaching, Trading Combine, Trading Basics