FKLI Trades Nov 21, 2005 to Nov 25 2005 - Closed with a net loss of RM50 commission

FKLI November 2005 chart on Novemeber 18 05

Date Contract Open High Low Close
Nov 18, 05 Nov 05 888 897.5 888 897

Trade Planning and Management
November 21, 2005
1. Entry Strategy for Oops! Buy stop order
a. Option 1: If the price opens gaps down from prior day’s low, put a buy stop order 1 tick above prior-day low after FKLI opens.
b. Option 2: If the price opens flat or higher than prior day’s low, do nothing.

2. Entry Strategy for Oops! Sell stop order
a. Option 1: If the price opens gaps up from prior day’s low, put a buy stop order 1 tick below prior-day low after FKLI opens.
b. Option 2: If the price opens flat or lower than prior day’s low, do nothing.

3. Entry Strategy for Oops! Buy stop order during Rollover period (starting 22nd of the month):
a. Option 1: If the price of both Spot and Next month contract opens gapped down from prior day’s low, put a buy stop order 1 tick above prior-day low after FKLI opens.
b. Option 2: If either the price of Spot and Next month contract opens gapped down, do nothing.
c. Option 3: If the price opens flat or higher than prior day’s low, do nothing.

4. Entry Strategy for Oops! Sell stop order during Rollover period (starting 22nd of the month):
a. Option 1: If the price opens gaps up from prior day’s low, put a buy stop order 1 tick below prior-day low after FKLI opens.
b. Option 2: If either the price of Spot and Next month contract opens gapped up, do nothing.
c. Option 3: If the price opens flat or lower than prior day’s low, do nothing.

5. Pyramiding and Re-entry Strategy
a. No Pyramiding and Re-entry Strategy

6. Trade Management
a. If the stop order is triggered, put a stop order:
i. 1 tick below the intra-day’s low for Buy stop order.
ii. 1 tick above the intra-day’s high for Sell stop order.
b. Exit Strategy
i. MOC – if the price hits extreme in your favor. The extreme is when a long outside-day is formed with Close near Low or High. Close at 5:14pm.
ii. Next day‘s Open – if the trade is profitable but the price is not extreme, leave it over-night. Exit next day’s Open if the price gaps in your favor.
iii. Next day’s Close – if the price hits extreme in your favor. The extreme is when a long candle is formed with Close near Low or High. Close at 5:14pm
iv. 10 to 16-point profit. – Exit immediately

c. Trailing Stop for Exit on Next day Close or subsequent days
i. The protective stop cannot increase your risk (loss) and reduce your profit unless No 6 and 7 below.
ii. The protective stop cannot give back more than 6 points of unrealized profit.
iii. When the trade is profitable, move your protective stop to the breakeven point. Trail your stop.
iv. When the trade is profitable, move your protective stop. Short Position: Move your stop to 1 tick above the open or high, whichever is lower, for sell stop but must be lower than your previous stop. Long Position: Move your stop to 1 tick below the open or low, whichever is higher, for buy stop but must be higher than your previous stop.
v. If the price moves in your favor, the trade is profitable and the prior day bar is a long bar (more than 8 points), move your stop 1 tick above or below the middle of the bar.
vi. Short Position: If prior-day’s bar is a long bar (8 points or more) and the today’s open is higher than prior day’s close but below the middle range of prior-day’s range, put your stop at 1 tick above the middle of prior-day’s range. Long Position: If prior-day’s bar is a long bar (8 points or more) and the today’s open is lower than prior day’s close but above the middle of prior-day’s range, put your stop 1 tick below the middle of prior day’s range.
vii. Short Position: If prior day bar is a long bar (8 points or more) and the today’s open is lower than prior day’s low, put your stop at 1 tick above the prior day’s low. Long Position: If prior day bar is a long bar (8 points or more) and the today’s open is higher than prior day’s high, put your stop 1 tick below the prior day’s high.
viii. Short Position: If prior-day’s bar is a long bar (8 points or more) and the today’s open is higher than both prior day’s close and middle range of prior-day’s range, put your stop at 1 tick above the prior-day’s high. Long Position: If prior-day’s bar is a long bar (8 points or more) and the today’s open is lower than both prior day’s close and middle of prior-day’s range, put your stop 1 tick below the prior day’s low.
ix. The maximum loss is 10 points or high/low of the next bar if the price gaps

7. Today’s Entry strategy:
a. Call Apex at 8:45am to check the opening price. .ASK Apex for the following before entering a trade:
i. Open
ii. High and Low
iii. Last Done
iv. Prior day high / low
b. If the price opens gaps up or down, put a stop order
c. Ask them to inform you when any trade is done. If the stop order is triggered, put a protective stop order based on intra-day High or Low.
d. Exit on MOC, next day‘s Open, next day’s Close or 10-point profit.
e. Let the trailing buy stop follow the price until it is taken out.

8. My actual Entry strategy
a. I called Apex to check the Open. The price opened gapped up at 898. I checked the OI. It dropped 1,400 to 19,768. It may be bearish when the OI drops when the price moved up. The crowd may be trading the December contract.
b. I put a sell stop order at 897, 1 tick below previous day’s high, at 8:46am. I told myself to put in buy stop order when the sell stop order is triggered.
c. I plan to stay with the trade if the price closes higher than 897 with a shooting star formation if I am not stopped out as then trend is down.
d. My buy stop order was triggered at 897 at 11am. I put in my stop at 902, 1 tick above the intra-day’s high of 901.5. I hope that it is not another gapped-up and close-up day.
e. I did not monitor the price as I was busy with my work outside.
f. I checked the price at lunch. The price closed at 898 flat even the CI close 3 points up.
g. I check the price at 4:30pm. The price stayed at 897 and 898 range after hitting high of 900 after lunch. However, the CI is up 6.5 points. There must be more sellers than buyers
h. The price hit 895 low before closing at 895.5. The Ci is more than 5.2 points

9. Trade executed according to plan? YES

November 22, 2005
1. Today’s Trade Management:
a. Call Apex at 8:45am to check the opening price.
b. Initial Trailing Stop:
i. If the price opens gaps down, close your position immediately. Remember, Oops! is most powerful this time. It is also price-extreme.
ii. If the price opens gapped up, do nothing initially. Close your position after 10:30am if the price stays gapped up.
iii. If the price opens higher, flat or lower, put your buy stop order at 902.
c. Possible Exits:
i. MOC
ii. There is a price extreme – a long white candle with close near the high.
iii. If there is 10-point profit.
iv. Let the trailing buy stop follow the price until it is taken out (if there is a down-trend)
d. Subsequent Trailing Stop:
i. The breakeven point, 896, after the price breaks 890.
ii. 895.5, 1 tick above the low of the previous day’s bar, if the price breaks 888.

My actual trade management:
a. I called Apex at 8:46am to check FKLI Nov open. It opened at 897. I immediately place my protective buy stop order at 902 with hesitation.
b. I was outside working. So I let the position open. I called Apex at 10am to check the price. Joanne informed me that the price is at 898.5 with Low of 896, High of 898.5 and volume of 465.
c. I thought that I may be stopped out today.
d. I did not receive any call after 12:45pm. My trade may be safe.
e. During noon, I checked the intra-day chart. The price hit high of 900.5 twice to form a double top and the price moved down to close for noon at 894.
f. At 2:30pm, I called to lowered by stop to 901 to reduce my potential loss at 901, 1 tick above intra-day high. If the price hit this level again, the price may be moving side-way with a lot of whipsaws.
g. The price then moved lower to 893 and hit 890 low before closing at 891.
h. I think that my previous trades have taught me to be patience with trend-following Oops! Sell.

November 23, 2005
Today’s Trade Management:

The price may open higher as DJIA gained 51.15 overnight.
Today’s Trade Management:
a. Call Apex at 8:45am to check the opening price.
b. Initial Trailing Stop:
i. If the price opens gaps down, close your position immediately. Remember, Oops! is most powerful this time. It is also price-extreme.
ii. If the price opens gapped up, do nothing initially. Close your position after 10:30am if the price stays gapped up.
iii. If the price opens higher than 891 but does not gap up, put your buy stop order at 901, 1 tick above previous day’s high.
c. Possible Exits:
i. MOC
ii. There is a price extreme – a long white candle with close near the high.
iii. If there is 10-point profit.
iv. Let the trailing buy stop follow the price until it is taken out (if there is a down-trend)
d. Subsequent Trailing Stop:
i. 897, the breakeven point, if the price moves below 890.
ii. 895.5, 1 tick above the mid-point of the previous day’s bar, if the price breaks 888.
iii. 890.5, 1 tick above previous day’s low if the price breaks 885.

My actual trade management:
a. I called Apex at 8:46am to check FKLI Nov open. It opened at 893. I immediately place my protective buy stop order at 901.
b. The Dec contract opened gapped-down.
c. I did monitor much as I know the price may move up ahead of roll-over as the sellers will buy spot month and sell next month contract. I have to let the market decide.
d. I did not receive any call after 12:45pm. My trade may be safe.
e. During noon, I checked the intra-day chart. The price hit high of 896.
f. At 2:30pm, the price moved up to 898. I thought that I should cover but I let the market decide. I am trading a trend-following Oops! I need to give the trade more spaces to move but my stop stayed at 901.
g. The price then moved lower as CI is moving down.
h. Some of the short sellers are rolling over their positions.
i. The price then moved down to 895
j. This form an ID-NR4 pattern but the pattern does not exist in the Next month contract. It may be a whipsaw.

Trade executed according to plan? Yes

November 24 2005
The price may open higher as DJIA gained 51.15 overnight.
Today’s Trade Management:
a. Call Apex at 8:45am to check the opening price.
b. Initial Trailing Stop:
i. If the price opens gaps down, close your position immediately. Remember, Oops! is most powerful this time. It is also price-extreme.
ii. If the price opens gapped up, do nothing initially. Close your position after 10:30am if the price stays gapped up.
iii. If the price opens higher but lower than 898, put your buy stop order at 901, 1 tick above 2nd previous day’s high.
c. Possible Exits:
i. MOC
ii. There is a price extreme – a long white candle with close near the high.
iii If there is 10-point profit.
iv. Let the trailing buy stop follow the price until it is taken out (if there is a down-trend)
d. Subsequent Trailing Stop:
i. 897, the breakeven point, if the price moves below 891.
ii. 895.5, 1 tick above the mid-point of the previous day’s bar, if the price breaks 888
iii. 890.5, 1 tick above previous day’s low if the price breaks 885

My actual trade management:
a. I was able to get the OI from Apex online price after 7am
b. I called Apex at 8:46am to check FKLI Nov open. But it was not open yet with pre-quite 896.5 and 897.
c. Joanne of Apex called to inform that FKLI Nov opened at 897. I just put in my stop at 901. It may be hit today.
d. I called at 9:15am again to check the price. It was at 898 and 898.5. It is a breakout of ID-NR4? But the trend is down.
e. I was a bit nervous with the trade as the price moved up and down. But the trend is like that.
f. I did monitor at 12pm as the price moved around 895 and 897.
g. The price then moved down at 883 as the CI dropped 1.9 points. However, the price moved back to 895 as CI gained 0.75 at closing.
h. The volume is higher as there is some roll-over but it is not strong. It is interesting to see how the market will perform tomorrow as DJIA is closed for Thanksgiving holiday on Thursday.

Trade executed according to plan? Yes

November 25 2005
DJIA is closed for Thursday.

Today’s Trade Management:
a. Call Apex at 8:45am to check the opening price.
b. Initial Trailing Stop:
i. If the price opens gaps down, close your position immediately. Remember, Oops! is most powerful this time. It is also price-extreme.
ii. If the price opens gapped up, do nothing initially. Close your position after 10:30am if the price stays gapped up.
iii. If the price opens higher but lower than 898.5, put your buy stop order at 901, 1 tick above 3nd previous day’s high.
c. Possible Exits:
i. MOC
ii. There is a price extreme – a long white candle with close near the high.
iii. If there is 10-point profit.
iv. Let the trailing buy stop follow the price until it is taken out (if there is a down-trend)
d. Subsequent Trailing Stop:
i. 899, 1 tick above previous day’s high, if the price moves below 893.
ii. 897, the breakeven point, if the price moves below 891.5.
iii. 895.5, 1 tick above the mid-point of the 2nd previous day’s bar, if the price breaks 888.
iv. 890.5, 1 tick above previous day’s low if the price breaks 885.

My actual trade management:
a. I was able to get the OI from Apex online price after 7am
b. I called Apex at 8:46am to check FKLI Nov open. The price opened flat at 895 as DJIA is closed for Thursday.
c. The price hit 897 and came back to 895 with heavy rollover.
d. The CI dropped 1 point but the price stayed at 895.
e. I regretted for not closing my position before the rollover started yesterday on 24th of the month. During rollover, the price may not move a lot or moved not according to CI.
f. I decided to close my position as I felt not right and the trading window of November contract is getting smaller.
g. I called Apex at 0:30am to check the price. The rice is 896.5 and 897.
h. I closed my position at 897. It is a break-even trade with a loss of RM50 commission.
i. The price then moved back to 895 and stayed there even CI dropped 2.9 points.
j. It closed at 896.5 as CI closed 0.63 higher with thinner volume than that of previous day.

Trade executed according to plan? No. I felt not right and the trading window of November contract is getting smaller. That’s why I got out.

What I have done best:
a. I follow Oops! entry.
b. I let the order for the whole day before MOC.

What I need to improve:
a. I need to find out the spread and volatility of FKLI during rollover (24th to 30th of the month)

What I have learned:
a. The rollover period is not very suitable to trade as the price may not moved according to CI.
b. If there is an open trade, close your position 1 day before rollover to avoid some whipsaws.