Warrior Trading Blog

We’ve Done It Again: 3/3 GREEN Weeks! | Roberto’s Weekly Recap


What’s up guys, Roberto here. I’m a trading educator for World of Trading, and today we are gonna talk about my weekly recap. So this week we have been given some nice opportunities for the market. I wasn’t able to really hit one big home run trade, but I ended up taking over all of three trades and all of those were green. So, for every week where I’m able to get 100% of a accuracy is always a great week. So let’s jump over my shoulder and review those trades together.

So guys, consistency, consistency, consistency. That’s been really the most important concept and most important application for trading. And especially during the month of August, this has been quite quite good. And this really is coming up along with the overall kind of summer trading. I’ve been taking an overall amount of, you know, fewer trades than I would typically take outside of the summer season. But man, the accuracy is still on point. So we are above 70% here of accuracy, so far this month. Overall total of 11 trades with a profit loss ratio above four to one. Of course, these numbers are also affected by the fact that the number of trades has been lower than usual, especially the profit loss ratio having it only three red trades for the month. And we also have been able to cut those losses quickly. Actually you have two losses in one break even trade.

The average of this, of these losing trades of course is quite low because, in case you don’t know, the profit loss ratio is calculated taking consideration the average amount of your winners versus the average amount of your losers. So, that kind of ratio together with the accuracy will give you, basically, where you are at as a trader. So, my target is 60% accuracy. Kind of my benchmark and we are above it, above that. So that’s good. And the profitable ratio I’m looking for is anywhere from 1.5 to one or above. And we are well above there, so very good job there as well.

So now it’s time to talk about the trades from this week. So this week I’ve been taking only three trades, but all of those were green trades. And, although I’ve been missing, like a very much … like a very big home run trade, I’ve been able to consistently close into green, and so I’m quite satisfied about how I executed my trades, how I planned for them and the overall consistency is there to tell you that you, you know, you are doing something right.

So with that being said, that’s analyzed our trades individually and so that you can potentially learn something more about the way I trade. So the first trade happened last Wednesday, so on either Monday and Tuesdays, I did not end up taking any trades and there were simply no set up that I would really go for. And so, on those days I just, you know, I just sit down and kind of watch the market without necessarily taking any position, any trades. And, instead, from Wednesday on, I’d been taking one trade per day. First one was on MYGN. So, MYGN, let’s analyze the chart. I’ll go quick, just for you very quick. If you are new to the way I display my charts, here on the left is the three minutes chart; on the right, you can see the 10 minutes chart on the top right and the daily chart on the bottom right corner.

So that, you know, all together this will give me the overall picture. I’m starting from the bigger time frame all the way into the smallest one that I use, which is the three minutes. In order for me to give me those punctual entries that I look for, you know, to get into my trades. So every time I’m looking for those like more risk, higher reward kind of setups and that’s why I use the three minutes for that. And also [inaudible 00:05:33] . Definitely, this is all kind of our picture together with the 10 minutes and the daily chart. So this orange line that you see is the 13 exponential moving average, this blue line is the view up and, as you can see here, I also have the view up the blue line on the 10 minutes and have the yellow line here on the 10 minutes, which is a 13 EMA on the 10 minutes.

And this yellow line you see here, the three minutes, is basically exactly the same. It’s the same indicators of set the 13 EMA’s on the 10 minutes, but it’s plotted here in three minutes as well. So, I can maintain every time kind of an overall situation, where we’re at. I would typically never go long if we are below any of those three and I will end on the other side. I will never go short. If you are above any of those three. So just for you to know. And then of course I have this purple line you see here, it’s basically the hundred simple moving average from the daily. And then I have the, you know, the same colors are basically valid all over, across the board of my charting platform. So if you are interested actually to take my exact layout, you can click on the link down below. That will be our link for trading view … for joining trading view. If you’re interested, and you know, you go ahead and click on the link and subscribe to any of their packages and then email me at robertoworldoftrade.com and I’ll be happy to share with you guys my exact instructions for my exact layout so that you can start trading the way I trade.

And so, the first trade was on MYGN. So, what I was looking for on MYGN. First of all, look at this pre-market pattern, pre-market pattern here. We had enough volume, have more than 300,000 shares traded in pre-market alone. And look at this pattern here. We were literally going 45 degrees here, south, like in a steady way. So this is the kind of patterns … definitely among my favorite and usually results in more weakness in continuation down after the market opens.

And, just to give you more perspective, I also of course always keep an eye on the daily chart. And as you can see here, a few days before the day of this trade, which was August 14th, we had on the 1st of August this huge green candle, most likely due to a breaking news of whatever nature. But, what I was interested in on that specific day, so on Wednesday, was the fact that we were not only basically like coming back below all those three major moving averages on the daily. So, both on the 20 MA, on the 200 SMA and the one MA, were were cracking it below before the market even opened. You see, you see those two moving averages here? And so, we were not only that, we were also kind of rejecting this fool move here. And that usually means that all these guys that bolt into this spike here are now in big trouble and that means that usually that would cause some panic selling of those guys. Just basically realizing the loss because these huge moves, when there is no follow through are going to generate these panic reaction and, that’s a typical situation where, as a day trader, you want to take advantage of that mass psychology reaction and eventually plays your own trade.

And so what did I do here? I waited for my signal. So as typically I was looking for a breakdown below pre-market lows, but, whenever that happens during the first three minutes of the day, which is this candle right here, I always wait for a kind of continuation because I just believe there’s too much unpredictability on the price action during the first three minutes and so I don’t want to get involved. I want to wait a little bit longer, and then I want to get a short on a three minutes open range breakdown if there is not too much over extension from the 13 EMA and how do I measure our extension?

Well, I have a custom indicator which is included in the layout that you would get if you decide to join trading view and, so you see here, it was bloody red. And what that means for me is the fact that we had over extensions. We’re more than 2.75% extended from the 13 EMA. And so, for me in that case, even if you get a three minutes opening range breakdown, I’m not taking the trade just yet. We are too much over extended. So what do I look for instead is a retest closer to the 13 EMA and, in case, even the view up. So I liked what I had seen here and I was watching here for this retest to fail. And now this thing started to retest and some traders aggressively started to short into this, you know, into these retests here.

But I, as usually, always wait for a little bit more of a confirmation. And so, since this one was in shortening restriction because it was down more than 10% since yesterday cause of price, I am typically, in that situation, I’m not going to take the trade when it cracks below the first three minutes. But, I want to take the trade when it starts to confirm this rejection and that happened over here. So for me, I actually entered the trade a 27 35 here short on this rejection. And also because I’m always kind of drawing this risk reward even before entering the trade. And, here, when the move was hesitating, I really picture that at the point was that was a very good bargain in terms of risk reward because I had my two for profit target here. You know, my first, it’s a green line here and it’s a 1.5 to one profit in the risk reward and, then the second, a 2.5 to one here they looked really, really achievable, right?

And whenever that situation happens, I’m more confident about entering the trade. And so I hit my sub button here at 27 35, I got field and then this thing broke the three minutes low here and it started to sell off. So, I have my first started at at 27 80, while my first stop distance was about about 40 cents. So I take the first one here with adjusted limit, regular limit order at 27 80s and then I take the second one at 26 40s and that was a very, very nice, lucky cover. Of course, in hindsight, is always easy; I mean how to recognize was a lucky cover, but you have to have the plan in place before eventually be able to capitalize from those moves.

And so when this thing starts reversing and pushes here above the previous three minutes, I just went ahead and took the rest of the position off. In the end, it was a nice, it was a nice little trade there and it was about it. To start the week very, very nice, you know, with a $500 win. So, the next trade was on Walmart, WMT. WMT was a gap up fade play and so kind of the premises of this trade, we’re kind of the opposite of the one that we just saw, MYGN because we had a push of this thing into the mornings. So, early morning, this thing was pushing because they had positive news about earnings. Whenever that happens, I’m not like letting myself, like too much, you know, getting impressed by those kinds of numbers. What I … all I trust is the technicals and of course the setup that I want. And so I was doing my due diligence and making sure I had my levels from pre-market. As you can see here, there was a level of here in about one twelve here.

It was a level at about 112. And so, that’s the one I was actually watching, eventually, to crack before taking a short because, in the situation of a gap up, I would typically look for a potential long above pre-market highs. And I was looking for potentially that. And including my layout, is also that’s in the session high, low. So whenever you do select that last only, you can also use it for back test. So one of the 14 here was the high of the pre-market. So I was either looking for a long above 114 or a short below here, this one, 112 area. And so the market opens, we had the first candle where, as I told you before, I don’t take any trade and just look into it, analyze price action to see where this thing is actually going.

And what I notice is that, again, we have all our moving averages here that are above the 112 support area. So I know at that point, if we are going to reject we’ll probably be rejecting below the 112 with some sort of strength or, on the other side, we’ll be pushing about 114 also with strength. So, at first three minutes candle, this thing is just choppy. It’s retesting the 112, going back up and fading. Here is 113 the secondary is kind of open and boom. It totally, within like a few seconds, this thing just fell from 113 all the way to 112. And it cracked for a second. I am not getting in just right here for now just because this thing has push here, and then it reversed. A good first point of entry would have been here at 112, but instead I waited for one for one … three minutes candle more because, as you would typically know, I would be basing my stop, you know, to the high of the same candle of the one I’m taking the trade off of.

And so entering here, on these three minutes candle would have meant having a stop about 113. And so, my target, my first target would have been a 110 40 and all those targets just, you know, seem to be too unrealistic, right? Because the risk that you’re taking here, it’s quite big, right? And so, instead of taking it on this, three minutes candle, waited one three minutes candle more here, and as soon as it opened here, we can zoom in. This thing, this thing started pushing and it struggled here. It struggle on this level of … struggle at this level here of resistance, you know where we had the 13 EMA on the 10 minutes, the view up and the three minutes basically all within a few cents. And so, I was watching that point for price action and I was planning for it to, eventually, play for a continuation down, in this case.

And so this thing opens, started pushing, then it immediately started rejecting. And so, as soon as we came back below and test, and retesting that 112, that’s when I answered. I enter my trade here, knowing that at that point I was only risking 30 cents basically to the high of the same candle. But now my targets are really looking much more realistic, right? They’re looking much more realistic and so, my first target is here at one 1158 and, as soon as we get these one 12 sell off, we’ve made a new low and we got to our first target here and then boom, we got to the second target and then this thing started pushing back up. And instead of me like, you know, being … you know, waiting for, eventually, a third move here, I just went ahead and, I stopped out the rest, close to my break even.

I think I stopped out at one 1180, one 1185. And, instead, if I would’ve just been waiting for my original plan, which would have been to, you know, to stop out the rest, breakeven or wait for the my third target, I would have definitely gotten it to my first target. And that’s what most of people actually, in the chatroom, took advantage of. They stayed here, they stayed engaged and they ended up, you know, doing even better than I did. But, in the end I was satisfied with my trade anyway because, whenever I get to cover my first two third of my position, most of the trade is usually done. Then, of course, I’m still holding the last third of my position to see if, you know, I think I can hit a home run trade, but I’m … you know, I was satisfied with that, even with this imprecision into execution. So, it’s always also good to be learning from your own trades, from your own mistakes so you can get better and better over time.

And then, we come to today, come to Friday, we had the trade on AMATM at, it was on earnings and it was gapping down, was gapping down. It’s one of my favorite actually situation when the gap down happens, but it’s nowhere close to the 10% mark where we actually get into short-selling restriction. You cannot have an easier job trying to get field and that’s what happened, where I’m at today. We have earnings and this thing was a little bit choppy, but we had, definitely had good volume in pre-market for the thousand shows traded here and we had some decent levels. So, we had a 45 level here actually here from pre-market as well as where the pre-market allows a 45 18.

So, we had a decent window. So I figured if we open, we start to sell off below this for these pre-market lows, then we may have, even, a potential window here to cover, you know, between 45 and the hundred simple moving average here, the 43 80. And so, I figured that it was a decent play in case we had, of course, a decent setup. And so this thing made, kind of, an overall weak pre-market pattern so you can see it overall. It made, you know, this initial push yesterday, but then it got reversed and then we had a little bit of a recovery but we didn’t make higher highs here, instead we made lower highs and lower lows. And so, into the open I was looking for it to eventually fail below these pre-market lows. And so, the market opens and, three minutes later, this thing is … it looks like it’s kind of untrailable, right?

Look at the first three minutes alone. First three minutes alone here, was just shopping us. We had this in volume overall, you know over 1 million shares traded the first three minutes and then the second time it was open and starts to sell off. It starts to sell off below all the the measure moving averages. It made a new low below the low of the day and here it closes right at the pre-market lows 45 18. That’s what I liked, but as I said, and more or less the same thing that I’d done on WMT, instead of getting short right here, I waited for a next candle to open. This thing opens, it makes a little push and it starts to sell off.

It starts with a sell off here and the offers, the opportunity, of our nice, very, very, very well defined … a very well defined profit loss, profit loss ratio and especially risk reward ratio, in this case, because we can risk up to the same candle here on the three minutes. And we know we have a nice window down here, right below these pre-market low here we have a decent window. And the thing was just selling off like crazy since now, you know, about five minutes. And so you know you’ve got the strength there to eventually go lower. And so, whenever we had this push, this fail, and then back down, goes back down and retest the pre-market lows, it got short here. Now’s in chatroom, live, 45 18 pre-market lows and then, only one minute later, we got the flush into the 4485, 4484, 4485 level where I got the first third of my position off and then I was looking for 4462 as my next target.

This thing started selling off. It went to 44 64 and it didn’t feel my second target. In instead, it started to reverse. And whenever that happens, I’m going to be quick on my feet and, eventually, getting out on a break even. That’s what I did. This thing started to push and it actually stopped me out, break even in the rest of 45 18.

So, overall was, again, a decent trade, but of course it could have been much better trade, you know, if only we had these 2 cents more here of a move to get the second third, the position covered. But Hey, we talked about being a little bit more, you know, luckier here on this cover, on MYGN. And so we were not, you know, we did not have the same kind of luck again today. But hey, that’s just luck of the trade. That’s trading. It’s not, you’re not going to get the exact bottom or the exact top of any move every day. And that’s not the overall goal. The overall goal is to have these numbers here always in check and have those numbers here that are working for you in order to get consistently profitable.

So, so the accuracy is great. The profit loss ratio looks very good as well. So if you have any questions, please leave a comment down below. I’ll be happy to come back and answer to you guys later on. If you enjoy the content of these videos, as usual, I’m only asking you to put, you know, to leave a like down there showing some love, so that I can continue to do the same in the near future. So, I want to thank you guys for watching and I will be speaking with you in chatroom first thing Monday morning.

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