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Warrior Trading Blog

The Green Cowboy +$812 | Steve’s Futures Pulse 192


Who am I kidding? I don’t have any exes. Well, not that I’m aware of. Today was an exciting day to finish the week. Five green days, which makes it a perfect green week. Don’t let my shirt fool you. We didn’t go gold digging. That was yesterday when we scored $480 in a short lived trade. Today it was all about the EBDSMP and finding a breakdown mode trade where we scored $812 in just eight minutes in the trade.

I recorded all the action for you in the Futures Trading Chatroom so you could see why we took the trade, how I instructed members how to pursue the short side, and how we put together a bias that served us well. I’m off to the beach for the day. It’s not even … My goodness. I’m looking at it now. It’s not even 10:00 Chicago time. My biggest decision, what the heck am I going to do with the rest of my day? I’m sure I’ll find something and I might even head over to the concert later tonight.

If you just tuned in, we just shorted, we’re short at 29-19 and a half and the reason we like to trade is look at, it’s a breakdown below. It’s a re-break down below that 29-20 low value area demand zone. We’re also in the bear camp down below here. This one we gotta be all about risk management here. Market is volatile. We’re in the congestion zone, or what I call the neutral territory over here on our price compression levels. We really feel good about the trade. If we get a breakdown below that bottom tier of that aqua color line, which is the move into the end of the bear camp. Market is just hovering inside that value area by our TAS boxes. We’ve got some good levels up above to give us some opportunity to get some price pressure up above a resistance.

That’s what we want as a trader. We’re not going to come way above this technical high. For those of you that are looking for a place for the stop this high up here, by the way, it comes way up at a 29-35 and a half. We don’t want to risk that much on this particular trade. Okay? We do want to get above these back to back levels right here. See? See how if we get above the 29-28 and a half zone, it’s also where we had that a POC level.

I’m going to come up there, I guess you’re gonna come through and even 10 points higher, so it’s going to be a 29-29-half. right here is our stock, which means the market needs to come through and actually needs to fight through our POC, needs to fight through the demand levels, fight through the POC up over here, and finally that supply area. Again, for me is just not worth it. Giving it that extra almost seven points higher to get above this outlier technical high. Okay?

It’s either going to give us that re-break down below and move back down below this range and break free. To the downside or it’s not, we’re going to call it quits over here. 10 points equal. This is a $500 per contract risk. Remember, you can trade the micro one 10th the risk. Okay, so just $50 risk on that one.

We’re short right here. Again, right out of the gates here, we had a little move in our favor head about three quarters of a point right out of the gates, which is kind of great, but now we’re down two and a half points on it right now. Okay, so don’t freak out. This is all normal stuff. Remember, markets don’t move on our time horizon. They move when they’re darn ready. Still feel good. We got some good congestion zones up above and we’ve got multiple levels. We’ve got master appointed control, all kinds of levels up here for, we talked about surviving volatility in this market.

In fact, if you watch my Instagram, I talked a little bit about that in the car about half the battle is just kind of surviving volatility and staying out of the way of profitability when it’s right in front of you here.

Okay, here goes the market. We’re starting to break here 29-19, 29-19. Be patient, be patient. There we go on 29-16-17 and a half. Just like that, I just bought five back, closed out 562 on the trade, just like that. I covered five at 17 and a quarter so I grabbed two and a quarter points. I’ve still got one unit left on the short side. Make sure you adjust your stop on this one here. I’m bring my stuff all the way back down, back inside the value area right here you can see it said 20-20, our short is 19 and a half. We just covered five at 17 and a quarter of markets breaking and we’re at 16 and a half. We’re off to the races. We made some money. I made 562 on five units on a pretty low risk entry into the trade. We still got a hundred dollars in running on the current trade.

My give back on the current trades, that’s going to be $50 and I’m sure that I’m going to have a nice green trade here. Don’t forget to adjust your quantities when you adjust your stops. My new stop is 20 and a half. Okay, so just like that again, our apocalypse prevention plan stop was up there at 29 and a half. It’s now down at 20 and a half. So again, just a point risk on this one now. Okay?

A point give back on the remaining lot. It’s either going to keep breaking, give us some more again, give us that search to the downside here. EBDSMP, it’s the right thing to do. Yeah, we’re just being patient here right now. This is what it looks like here. Net position is still minus one. I initially sold six average price. You could see over there, 29-19 and a half closed out 562. We’re still in the short side. As thing’s pushing on the low right now we’ve locked in. Even if we get stopped out, the market comes up to 20 and a half on this trade. We will that give back $50 bucks. I’ll still make over $500 pre-slippage and execution of course.

How you guys do it on that short and that EBDSMP? How you doing? Yeehaw. Where’d you guys get short? Dante grabbed 125. Beau grabbed 125. Hey, we’re at 15 even now, pushing on the low. Remember we’re short from 19 and a half. Okay. What do we like about this trade? Let’s go back in time for those of you that are curious, when we turned on the computer this morning, early this morning, we started seeing the market get into that over extended mode. These pink/magenta color warning bars right here is exhaustion. Warning. Also when we start getting up over here over plus 40 that’s overbought, so the combination of being OB, not out of bounds, but overbought and the exhaustion warnings right here.

Then we start seeing the downward pointing trajectory on our navigator right there. That gives us the early cue that the tides are turning and we want to side with the bear. When we get that first closed down below here, those red colored bars right there, that’s the point where we know we want to focus our energies no longer on the long side. It’s only we want to be bears. I know I’ve got my cowboy hat on. It’s awfully tempting to be a bull today, but you got to get those bear claws out today.

When we started to see this re-emergence to the downside, this is 5:00 AM Chicago. For me, when I saw this and I saw the market was testing the waters down below the congestion, I knew I wanted to be on the short side here today. Okay, here we go.

We’re down to the downside, 15 and a half. We’re now up about 187 on that other unit right now. Don’t forget to adjust your quantities if you’ve entered short on the short side with me at 19 and a half right here, I’ve covered five of my six units at 17 and a quarter on that first research down to the bottom. We’ve moved our stop. We started at 29 and a half, a little bit above that top red supply line. We’ve moved it all the way down back inside here. See how we tier down? I call it moving it down the ladder. Okay? We use the ladder to put our initial risks, but then we use that same ladder to trail our stops down. Just like that. Okay, awesome.

$500 bucks for Zen. He shoots and he scores, or maybe I should get the lasso. We’re at 15 even now, we’re on the short side and we’re letting market profile work for us. Here’s how it works, guys. If you are new to the room, welcome, by the way, welcome to the fastest game in town, but it doesn’t have to be the scariest. Okay? Contrary to popular belief if you’re using the right tools. I’m a market profile trader, founder of TAS Market Profile we do at TAS Market Profile is we take volume, we flip it sideways this way, so you get this pretty little histogram that’s horizontal in focus because then we can see the areas where all the congestion is. You see how the further those lines extend to the right there. Those are the areas that are going to be resistance, when it’s above, down below it’s going to be support and we leverage it to our benefit here.

Market’s breaking 13 and three quarters. We are off to the races and I’m covering right here, right now. Covered that final unit. Where’d I get filled? I’m going to tell you right here, 14 and a half. I’m out. Ended up scoring here. A total of … drum roll please, $812.50 and we’re going to tell you the duration of that trade here in just a moment.

You can see right here, six by six on my short sale from 29-19 and a half covered five of six at 17 and a quarter. My last unit at 14 and a half. I’m done for the day. $812 and that’s all she wrote. We did it. We had our perfect five for five green days. We did a perfect green week.

Hey guys, these markets are going to be volatile today. I want you to be all about risks today. Okay? Focus on risk. Let the profitability take care of itself. Be patient, be disciplined, stick to your trading plan. I like to call it my life stop. You’re exactly right, Michael. Okay, ain’t too bad. This trade. All in all, I’m going to tell you we started that first entry into the trade at 9:16 AM and they covered that last unit just moments ago, a whopping eight minutes later. Eight minutes, $812.50 whopping cents. Hey, that’s not a bad little hourly wage, wouldn’t you say?

Hey, let’s do it again. We’re going to do it again on well, next week of course, but in the meantime, I want you to enjoy your weekend, do something fun. You earned it. Keep the discussion going. Let’s keep these ideas coming in and let’s share. Let’s do this together. After all, it’s a lot more fun to do it together than it is to do it alone. Right?

All right, everybody follow me on social media @futureswarriors. You’ll be seeing me at the show tonight. Maybe I’ll give you a little peek back stage too. Alright, everybody trade well and be well. Enjoy the rest of the day. Bye-bye.

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