sample trade - 11-19 jan 2021

dgmtrader -

(For informational/educational purposes only, not investment advice)

This was another trade using our recent favorite instrument TNA; this time we used DGM readings as entry/exit points for a swing trade. (Over time we might look to develop a model variant more suitable for swing trading)

Only one of the initial after-hours buy orders filled (on the subsequent morning, Jan 12). We held this small position until we observed a deterioration in the DGM and DIX readings. Note we used DGM readings to both enter and exit a position after-hours.

The trade returned 8.18%. Instrument: TNA (Direxion Daily Small Cap Bull 3X Shares), after-hours entry, after-hours exit.

Trade background, rationale, details:

  • Bullish uptrend, pullback on the day (SPX down ~25 points)
  • High DGM value on entry (98th percentile, see dgm-update-11-jan-2021)
  • Low DGM and DIX values on exit (19th and 10th percentiles, see dgm-update-19-jan-2021)
  • Multiple day swing trade
  • Entry: TNA @ $78.25 (extended hours limit orders, only one order filled)
  • Exit: TNA @ $84.65 (extended hours limit order)
  • P&L: 8.18%

time | transaction | amount

  • | - | -
    01/19/2021 18:07:34 | Sold 50 TNA @ 84.65 | 4,232.40
    01/12/2021 08:57:23 | Bought 50 TNA @ 78.25 | -3,912.50