Friday, February 11, 2011

Exit FKLI For 23.5 Points Gain


Date of entry: 10 Feb 2011
Short FKLI On Breaking Down With A Gap
I shorted FKLI Feb 2011 future contract at 1518.5 for 3 contracts.
Reason 1) FKLI opened with a gap down
Reason 2) FKLI broke below recent low
Reason 3) FKLI based on daily chart and 2 hourly chart is now below moving averages

Date of exit: 11 Feb 2011
Exit FKLI For 23.5 Points Gain
I longed to close the position in the early trade before KLCI opened at the price of 1494 with 23.5 points gain for each contract after deducting 1 point for commission. There is no strong reason to exit except that FKLI seldom behaves like this. 23.5 points for one trade is good enough for me.

The Profit: RM3,525 (23.5points x RM50 x 3contracts = RM3,525).


The balance of my account is RM20,150 after the profit of RM3,525.
(The details of my account is at My Future Trading Account Records 2011 )

5 comments:

  1. good call...but wonder why not implement trailing stop for futher potential downside...lengchai6

    ReplyDelete
  2. Hi LengChai6,

    I was thinking along that way. But through my back testing in trading using 2 hourly chart over a period of 1 year, the chances for me to stay on and wait for more than 20 points gain is rather slim. The probability is smaller than locking the profit of 10 points or 20 points.


    Regards,
    Abel

    ReplyDelete
  3. Hi Abel,

    Thx for your insight, good thing you are able to do back testing to do your hyphothesis..the OSK software not able to do that :( ... was looking at the CI futures weekly chart, simple 20 MA...hugging along this line... interesting to see if it will continue to a) drop further, b) drop and then rebound to the 1570 or c) sidewways...high chance of whipsawed if use MA down at the hourly MA...during this sideway period... bah, thaz trading life.. :) Rgds Lengchai6

    ReplyDelete
  4. by the way, was comparing mid jan 2008 vs mid jan 2011... dejavu? lengchai6.. p.s how to send the chart comparison to you? me, neither a blogger nor techie.. just old fashion email.. :)

    ReplyDelete
  5. Hi, LengChai6,

    You could email me at bullsa@ymail.com.

    Regards,
    Abel

    ReplyDelete