The following is a stream of posts made to our development team in SLACK related to this scenario plan for S&P futures outlined in this tweet.
Here is the final picture of the auction at the end of the day. Nailed the narrative. Simple to trade, right?
A scenario plan represents an “expected narrative” of the auction. Next task is to execute that narrative via “playbook set-ups” that further refine the criteria for execution around measurable auction behaviors. This DOES NOT MEAN it’s easy. As you will see next.
Many developing traders are looking to “funded futures tryouts” as a way to access capital and reduce their personal risk. I’ve been trading one of these tryouts for our team as a way to demonstrate a method of approach that manages the tight risk while keeping the equity curve intact. This is part of our new Development PATHWAYS: (GROUP_PATHWAY*PRO & VOD_PATHWAY*PRO) which pair our development process with an APTEROS TRADING Tryout at the same time.
Here’s the current state of my tryout…a little more than 15 days in, and sitting at +$1355, having steadily come back from an initial drawdown low of $47110 :
On this day (the 30th) I closed the day with a -182.80 loss. I also graded myself an A+
A+?! How’s that possible? I recorded a loss, yes, but it was how I recovered the loss that I was very pleased with. Here we go:
We had extended the Initial balance high and were aiming for 3679 and ultimately 3710. It was an #IBGW (Initial Balance Extension Go With) long for me, but in trying to force the trade and dip my toes in too many times, I found myself in the hole. (All times in MST…add 2hrs to convert to EST)
Yes Virginia, after more than 10 years of being a consistently profitable trader (and after having a stellar week up to this point) I gave in to too much Hercules Syndrome and was forcing my loss limit.
When you find yourself in a spot like this…first step is to step back and see what’s going on. I had let the animal spirits take over and I was not executing well. Time to sit back and let the auction develop. At this point, I may have been done. Waiting for the auction to show its hand.
Between 9:07 and 9:45 AM MST, the directional conviction that appeared to have 3710 ES in its sights failed with directional conviction that signaled new “likely” destinations.
When directional conviction comes into the auction, things get more clear and if they align with your playbook (Initial Balance Extension Fade), you can step back in with defined risk:
Making up ground, but a way to go.
More ground and leaning on my auction knowledge. My edged diminishes over lunch. Got to the sidelines. I may still have been done. I determined to let the auction tell me when it was time to get back in…if at all.
More conviction came in at the end of lunch offering more extension fade entries. Taking more ground. Now….starting to see some potential:
40 minutes of quiet over lunch as I executed a new #STRC (structure clean-up) trade to repair the poor low.
Yeah, it was feeling good at that point….but reminding myself to not be a pig. Heading into the close (1:36PM MST is 3:36PM NYC) on a Friday. I executed very well and now the odds were no longer in my favor. Once again, time to get to the sidelines with preserved equity in the tryout and an opportunity to take more ground next week.
And….done.
Funded Account Tryouts require significant discipline and a well-developed playbook. If you can manage the risk and manage yourself, the equity curve will likely take care of itself. As for this tryout…I am in no hurry. I tell our developing traders our mantra is #GoSlowToGoFast. We don’t have to hit the account profit target tomorrow. What we do have to do is come in each day with a plan, a playbook, and mastery of ourselves so that we can execute, never hit the daily loss limit, or have to reset the account.
Hope this gives you something to think about.
If you are attempting one of these tryouts without a plan, a playbook, or mastery of yourself….consider working with our team. Read more about our Development PATHWAYS: (GROUP_PATHWAY*PRO & VOD_PATHWAY*PRO). Not only will we demonstrate this before you, but we will work to equip you with the skills needed to confidently work through the tryout as well.
Trade well!
