Paper Trade 1 (Week 2) (Part 2)
Posted by Mark on September 22, 2014 at 06:42 | Last modified: February 5, 2015 09:01Last Friday (9/19/14), this trade hit the profit target.
On Day 2 of this trade (Day 1 was EOD when it was placed), looking every 30 minutes the trade was down as much as $990 and down as little as $140.
On Day 3, the trade was down as much as $200 and up as much as $600.
On Day 4, the trade was up as little as $1,280 and as much as $2,230. I could have closed the trade at the profit target intraday but at EOD (15:30), it was up $1,780. That’s not at target so I kept it on for another day.
On Day 5, the trade was up as little as $1,250 and at 15:30, I closed it for a gain of $5,130 (27%). My preference is to close trades intraday if max loss is hit but not to close trades until EOD if profit targets are hit. I feel that biases backtesting against the trade by providing more opportunity to hit loss points. At the same time though, by realizing a 27% profit rather than 10% profit (target), this is biased for the trade–maybe the two effects cancel each other out.
Only with enough occurrences will I have a better idea about this.
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