Today is Sunday, March 31th and we are summing up the trading week results.
Open positions at the current moment are:
Orange Juice: long position – 7 contracts.
Several positions have been closed during the week. Let’s consider deals in details.
Soybean Meal (closed position).
SetUp for Soybean Meal was published in the Weekly Trading Plan W09. Support level was very good for this instrument. Now it remains here (blue line). The operators net positions are positive.
At the moment, the monthly chart analysis of operator’s positions shows that when Сommercial reach the positive zone, the price of soybean meal has the increase scenario. We believe that in the nearest future the price increase scenario will be realized.
So, the first attempt to entry the long position in soybean meal was unsuccessful, the loss was $ 4,560. We are sure that the current price decrease is a correction, and we will continue to follow the price of soybean meal and look for the entry points to a long position.
Cotton (closed position).
We discussed the SetUp for cotton in the Weekly Trading Plan W09. Cotton Long contract was opened 03/19/19. The position was closed on Friday with the profit of $ 120.
Now I will explain the reason for the early position closure.
The cause is at risks. If the market was against us in open positions, then the loss in positions could be equal to $ 7,880:
Soybean meal – minus $ 4,560;
Cotton – minus $ 3,320;
Silver – 0 (the position at the time of cotton closure was in breakeven point);
Orange juice wasn’t taken into account due to several reasons: the far distance to the stop loss and the price of orange juice which should be bargained soon.
Our strategy is based on the strong compliance to risk management and if the market goes against us, we don’t think about profits, we think about risks. On Friday we met such situation, so it was decided to close the position on cotton with a minimum profit.
Considering how the cotton price behaved on Friday, we will plan to entry the market again at the high of Thursday next week.>
Orange Juice (open position).
Setup for Orange Juice was on week 9th too. There was setup to buy, but it was canceled due to the fact that the price rewrote Low during the week. We discussed this point in the trading plans and continued to follow the instrument, as the price had been flat for the long time and after moved sharply up. Now there is a correction. Stop remains at the same level. We will check how the trade is perfomed on Monday-Tuesday.
If the price overwrites Friday’s high, this will be the confirmation of the correction. We notice that this is the first correction after the trend change. The first correction usually works well during the trend’s change. Let’s observe the orange juice next week.
Silver (closed position).
Setup for silver was on week 10th. We did not enter into a position on impulse as there was a stop loss being very high. We were waiting for the correction. Correction came and we entered to short position at 03/27/19. However, on Friday the position was closed with a profit of $1,800. The reason for an early exit from a position was to comply with the risks that we discussed above. Profit from silver compensated partially the loss of soybean meal.
To sum up the trading week:
Silver Profit $ 1,800
Cotton Profit $ 120
Soybean Meal loss $ 4,560
Total loss $ 2,640
Today we will plan for the upcoming week and consider new setups.
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