Today the most recent trade for the robotic trading system TQQQ Trading Strategy closed. This trade was a winner. Unfortunately it did give up a lot of unrealized gains that were there early in the trade.
A robotic trading system can often behave this way. There will be trades that shoot up fast, only to give up gains from the highs as the trade moves on.
With all systematic trading systems – including momentum, trend following, and mean-reversion systems like this one – traders SHOULD NOT expect to get in at the low or get out at the high.
That is exactly what happened with this latest trade.
Robotic Trading System Trade Details
The Green Bar signal was triggered on November 3rd, which meant that the trade was opened on November 4th at a price of $135.59.
The trade performed very well right off the bat. On November 9th, TQQQ’s share price hit a high of $158.38.
That was a gain of $22.79 per share. If a trader had bought 100 shares, that was a gain of $2,279 or 16% in 3 days. However, the momentum was not going to last.
On Monday of this week things reversed. Even with a soaring SPY, the Nasdaq was dropping hard. That is never a good sign; divergences in markets like that usually does not end well.
As a result, the Red Bar triggered on November 9th, which meant the trade was exited on November 10th. The trade price for the closing trade was $137.14.
The overall gain for the trade was $1.55 per share or 1.14%. Not a 16% gain, but still a win.
It Was a Good Trade Because I Stuck to the Rules
The reason I bring up the high of the trade is not to tell you how good the system is. Instead, I want to be very transparent with how trading can and often does play out.
Traders often beat themselves up when they don’t get the highs and lows. Let me tell you from lots of experience that getting the high and the low price is impossible.
Sure, some people may get lucky from time to time, but over the long-term it is not possible to consistently and reliably capture the highs and lows of any tradable asset.
It is easy to look backwards and say, “I should have sold at the high!”. However, you don’t know how things are going to go. The share price could have easily continued higher yesterday.
This was a good trade because I stuck to my robotic trading system rules and only bought and sold when the system signaled to. That took 100% of the emotion out of the trade. It was a robotic trade.
Even though the trade result was not the peak gain, it was still a win and my account got a little bit bigger and closer to my retirement goal.
I am comfortable with that, and am now ready to move on to the next trade when it comes.
The TQQQ Trading Strategy eBook is only $29.95.
Get complete instructions for this easy-to-trade strategy and take advantage of the TQQQ’s mean reversion tendency. Click on the eBook image to the right or below to buy and trade this system yourself.