Warrior Trading Blog

Golden Redemption +$2,010 | Steve’s Futures Pulse 168


Hey what’s up fellow traders? It’s hump day, and we’re back on track. That’s the good news, okay? In today’s session we found two opportunities, one was in the Japanese Yen that we ended up scratching at break even and the other was in gold, a redemption play. As you may recall in yesterday’s trading session, I was heartbroken because we missed a monster home run in gold by just getting stopped out by a couple of ticks. It’s going to happen and it’s super frustrating when it does, but ironically we came back, we found a great opportunity in gold, grabbed $2010 on a six unit play which I’m going to show you in both an abbreviated recap at the conclusion of this and then a full recast thereafter, an hour and 40 minutes.

So if you want to see what it feels like to sit in the Future’s Trading chatroom for the entire session, I’ll walk you through in real time, obviously in recast now, exactly what it looks and feels like to be a part of my future’s trading chat room.

You’ll learn lots of tidbits and that’s what I do in the room. The difference? If you’re not a member, you don’t get to experience it live and it’s not actionable. So hope you enjoy today’s recap as I show you how it went down and the technical learning opportunities that are available today. I’m looking to come back and finish strong this week and I look forward to seeing you there. Until then, trade well and be well.

All right, we’re going to start in this case here, about the Japanese Yen, okay? So this is the chart, we’re looking at 10 and 30 minute chart and we started to see volume accumulation on the Japanese Yen here, okay? We often times using market profile, are looking for these gaps in volume, see that’s where I put a big X. You can see right to the back of the chart there, all that black space. These are zones that often times when the market breaks through them, especially if there’s a long range bar like this, like you see here and here, both on the 10 and the 30, we’ll see fast and vertical market.

Now the problem with this trade shortly after getting into it, we got in by the way 9346 right there. We put a stop down here, just 12 points lower, so $150 of contract on this one by putting it right here. Low risk trade, $12.50 per tick. But what happened was the market had difficult time breaking above these technical highs right here, okay? So it retreated many times over and it just showed us intent to stay in balance zone, at least beyond the length of period that I was going to be in front of the screen this morning.

So we ended up scratching that rate at the same price 9346 minus execution costs and exchange fees, of course those don’t go away. So we moved over to gold. Let me show you here gold, barium. This is going to be August gold contract, which I’m bringing up right here right now, here you go and this was a fun trade at many levels, because it gave some redemption from yesterday’s missed opportunity. But we initiated for a similar reason, we saw this volume accumulation right here, we saw all this space up here, okay. This is all the space we saw on the chart if the market broke free of that congestion.

So we initiated a long position as it emerged above, you can see that’s 141260, our long entry point came at 141290 right here on six units and it also was when we were starting to break above this POC level, so right over here. This one, we didn’t want to put the risk all the way down below that 1405 technical low here, so we picked a different spot which is something I talked about yesterday. You can reduce risk by trading smaller contracts, minis and micros, or you can reduce risk by choosing a different level. This is what we did in this instance. We put a stop at 140840 right here, that’s four and half dollar risk per contract on the expectation that all of this congestion here and this master point of control, that’s the yellow line right there which represents the highest volume traded price explicitly on the chart. It just makes it easy for you.

Remember you can’t see that with volume all by itself down here and that’s the real power of market profile the TAS way here. So we saw the market had good support down below with that master point of control yellow line. We saw the volume aggregation through the TAS Market Map and we’re off to the races, we go, we’re long. Early on in the trade, we were able to get the break we were looking for, and we were able to cover three of the six units at 141520 which is great because we booked 690 in profits at that point in time, but then we also took movement on our stops.

We took our stop from down here, four and half dollar risk and moved it all the way down to just a dollar risk, 141190. So again you trim risk from 450 all the way down to just $100 per contract which again, since we also took some profits on three units and left this with just three units and a $100 risk each, which is $300 risk of course, already closed out 690. Our worst case on the trade is $390 profit, feeling good at that obviously given yesterday’s session.

So thereafter we had the good fortune of seeing the market surge back higher. Again, you could see this here as we’re looking at the chart live at the time of this recording. We did sell out two more units at 141730 so that adds $880 to the 690 and we’re feeling good, right? We’re a little over $1500 at that point and then we did ultimately give and I’m off to enjoy my rest of my day. One of the perks of time freedom, being a trader. I did scale out of that last unit in subsequent bars at 141730 and that’s what basically amassed us at 2010 on the trade, you can see that right here, okay?

That’s how we finished off and away we go. So good comeback day for us. If you want to watch the full session, it’ll be at the conclusion of this one here, an hour and 40 minutes approximately. And that’s really just designed for those of you that want to kind of get a feel for what it’s like sitting inside the room and getting my candid remarks, commentary and seeing how these trades in real time, of course a delay, because you’re watching it on recording the entire time.

Now if you want real time actionable opportunity to interact with me, ask questions and participate in these markets while learning live. We call it learn while you earn right, and nothing beats that. That would then require to join of course the Warrior Trading Chat Room Membership at a bare minimum. You get access to me here in the Future’s Room and of course you get access to my friend, Ross in the Small Cap Room, and Big Mike in the Large Cap Room.

So there you have it, hope you learn something today. We’re back in the green. Look forward to finishing strong the rest of the week and I hope you’re there for it. See you in the morning.