May 27 2010 Overlay and Trades

I had a decent outcome today but got off to a rocky start.

I tried illustrating my execution areas on the prep this morning and the plan was to hit those areas unconfirmed.

However, as you can see, I passed on the two (or three) touches of 1089.00. These needed to be shorted.

The first touch at 9:32 AM EST was a clean trade because the leg was stretched but the second touch at 9:45 AM EST was against the upward structure.

I have modified the way I play the action to the point where I allow myself to hit trades that are blatantly against my bias and the prevailing structure.

This is because I see many opportunities that are against what I would consider direction and bias that actually have less risk of getting clipped out.

This is an adjustment made due to constantly being correct in premise but not capturing the trade due to hesitation, low/high ticks, and shallow tests.

I am still hitting my key areas that are with the direction of the trend but also playing the probabilities of a reaction at extremes.

I guess you could consider it providing liquidity but my bet size does not make any difference to the market.

I am going to try to further explain what I am doing as I get better at executing it. It has shown promise in allowing me to create outlier days but has also produced a couple really bad sequences. Mostly due to frustration and hesitation.

My trading needs some volatility and I am starting to get it.

These counter bias trades are tough for me because it is the opposite of what I have been doing. It still requires every but of knowledge I have gained on structure to execute correctly.

I should have had a much better day and need to just execute my areas and let my bets work.