we traditionally summarize the last trading week and prepare our plan for the next trading week.
We got out of a drawdown!
After several unsuccessful trades in the Dollar Index, Coffee, Corn and the New Zealand Dollar, our account was in the drawdown.
All trades, both profitable and unprofitable, can be found here.
This week we managed to catch a trend, make good profit in cocoa and get out of the drawdown. Two more deals were also opened. They will be described below.
It took three weeks to get out of the 8% drawdown. Such a short period was explained by the fact that measures were taken in risk management.
Let’s take a closer look at all the deals.
We are approaching the exit from a drawdown. Let’s see what week 31 was in trading.
COCOA (closed/open position), profit $36,400
SetUp to buy for Cocoa was published in the weekly trading plan W29. The position was opened on July 27 according to MA18 pattern. Part of the position was closed with a profit of $22,600 and yesterday a rollover was made to the December contract. The profit during the rollover was $13,800.
Now 5 contracts remain open. We move the stop loss along the 3-bar system. The total profit for the trade at the moment is $36,400.
Cocoa has a very good upward movement right now. The COT index has not yet run out. This tells us that there is a chance that the price will approach the heights of the beginning of this year.
There is also bullish accumulation and bullish momentum. Confused only by the seasonality, which is heading down and the supply and demand indicator. It dropped by the end of the week, but this may be due to the rollover to a new contract.
Let’s see what happens on Monday and Tuesday.
SOYBEANS (open position)
SetUp to sell for Soybeans was published in the weekly trading plan W29. The position was opened this Friday. We keep this position. Accumulation and momentum are bearish. The downward movement is supported by seasonality. Stop loss is placed above August, 3 plus 1 tick.
SOYBEAN MEAL (open position)
A position in Soybean Meal was also opened. These are instruments of the same sector and they are correlated with each other, so the risk was divided. Interestingly, the soybean meal always decreases more slowly.
Let’s see how the situation will develop this time. Let’s assume that next week we will close one thing in the portfolio.
That’s all about our trading in this week.
Next, we are moving to planning trading week 33.
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