Warrior Trading Blog

Monday ES Scalp +$737 | Steve’s Futures Pulse 196


All right. I’m going to recap our one trade here from today. It was in the E-Mini S&P. I wanted to kind of show you how this scalp trade came to life, why we really mitigated risks and we’re very proactive on taking profits as well as scaling our trailing stops down very aggressively here. And I’m glad that we did because you can see the market has actually turned around and what a was a winning trade would a be a loser if we were not aggressive on keeping true to that short term kind of scalp timeframe. So basically it was, we saw the market this morning on the 10 minute time horizon, had started to put it’s closes down below the demand area. Now that’s that green line that you see right here on the chart. When market closes down below there, it has a predisposition to want to get back down there again.

So you can see earlier in the morning, again, this is a 7:30 zone right here. Market comes up. On multiple occasions here, the supply area, which is that red line, reject the market’s initial break. So we got together in the chat room here at 9:08 AM this morning. It was on this bar. We started to see the market actually reassert itself to the downside, so we did initiate a short position 29.19 and a quarter, which is right about where I drew that line right there. This one I worked at actually a wide 10 point stop up there, 29 and a quarter, just initially with intent that as the market navigated a bit further south, we would move that down and we did get a chance to do that. See how the market kind of penetrated lower here. We were able to move the stop down at that time of 24 and a quarter, taking basically half the risk off the table. A risk reduction of 50% is pretty darn good. Now down to just a five point risk.

We went into profit taking mode aggressively on 9 of 12 units at 17 and a half. So let me just again draw. So 19 and a quarter’s right here. At 17 and a half, it’s right there. This is where we went into profit taking mode on again, 9 to 12 units. A little later in the bar, we also were able to take profits on two more at a price of 18 and a quarter as we start to see the market kind of working its way back up. So it was a risk reduction move to pull 11 to 12 units off the table and then we moved our stop again down to a 22 and a quarter which is right here. Okay, so it starts here, then it would come down at 24 and a half, then 22 and a quarter on just that one last unit, which obviously has a give back of 150 bucks.

It was all said and done it still as good trade and worth our while. We weren’t in the trade, but you know we started 9:08, little last cover comes at 9:17. Do the math. What’s that, nine minutes. Good job, Steve, with the math. And this is how it kind of shakes that, let me see, I can’t see out. There we go. So you can see a little bit better. There you go. So 12 by 12 when it was all said and done in 737 okay. And flat the market here, decent start to the week. Again considering the challenges we had last week and falling short by $278 by the end of the week for an entire week’s worth of work. We’ll take it green day, green trade and take a fresh look tomorrow. Markets are volatile and there’s a couple of other markets that if certain things come to life here today may evoke a signal.

But that’s what we got here for today is a nice little short side opportunity that we took advantage of in this little zone before the grind higher started to come to life here a little bit later after the trade. But again, we’re flat at this point, so not too bad.

All right, well we’ve added be at … it must be a Monday. I need another cup of coffee. That’s what I need. I’ll tell you that much. Have a great rest of the day. Keep sharing. Keep finding opportunities as we always do here in the futures room here at Warrior Trading and look forward to doing it again with you tomorrow. Let’s see if we can have a good week here together. Okay, trade well and be well everyone. Bye. Bye.

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