(For informational/educational purposes only, not investment advice)
DGM score came in at a high value yesterday evening (Dec 29), after a mixed day with a somewhat stronger tech sector. Notice also the very high GEX value (higher GEX tends to indicate lower volatility). Today (Dec 30) the market opened higher, then drifted sideways to lower during the day. This sample trade returned 0.55%, averaged over a few limit orders. Instrument: TQQQ (ProShares UltraPro QQQ), after-hours entry, regular session exit.
This time our trading instinct went to detract from performance; an instrument more directly correlated with SPX (such as SPXL) would have been a somewhat better choice.
Trade background, rationale, details:
- Bullish uptrend (arguably stretched, but still bullish)
- DGM value bullish, 90th percentile (see dgm-update-29-dec-2020)
- Speculating on good tech sector performance
- Entry: TQQQ @ $180.125 (average, extended hours limit orders, some additional orders didn't fill)
- Exit: TQQQ @ $181.125 (average, regular session limit orders)
- P&L: 0.55%
time | transaction | amount
- | - | -
12/30/2020 13:22:28 | Sold 25 TQQQ @ 181.25 | 4,531.15
12/30/2020 11:31:42 | Sold 25 TQQQ @ 181 | 4,524.90
12/29/2020 19:02:01 | Bought 25 TQQQ @ 180 | -4,500.00
12/29/2020 18:20:29 | Bought 25 TQQQ @ 180.25 | -4,506.25