sample trade - 17-18 feb 2021

dgmtrader -

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

We debated whether to publish this trade since it was a DGMV test trade on a day it disagreed with DGM, but here it goes:

DGMV score (still in test) came in quite bearish on Feb 17, confirming a trading instinct to put on a temporary hedge. DGM read was weak enough (barely positive, 31st percentile) to decide to go forward with a bearish trade. On Feb 18 the market traded through a few swings lower overall. Although we missed the best prices, the trade returned 2.39%, averaged over a few limit and stop orders. Instrument: SPXS (Direxion Daily S&P 500 Bear 3X Shares), after-hours entry, sell-stop exit.

Trade background, rationale, details:

  • Bullish uptrend, arguably signs of slowdown
  • DGMV value bearish (20th percentile, not published, in test)
  • Temporary hedge
  • Entry: SPXS @ $33.16 (average, extended hours limit orders, one additional order didn't fill)
  • Exit: SPXS @ $33.95 (regular session stop order)
  • P&L: 2.39%

time | transaction | amount

  • | - | -
    02/18/2021 13:23:13 | Sold 200 SPXS @ 33.9519 | 6,790.21
    02/17/2021 19:36:04 | Bought 100 SPXS @ 33.15 | -3,315.00
    02/17/2021 19:26:36 | Bought 50 SPXS @ 33.16 | -1,658.00
    02/17/2021 19:24:19 | Bought 50 SPXS @ 33.17 | -1,658.50