MONDAY RECAP & TARGET ACHIEVED

TUESDAY 10TH OCTOBER 2023

Thanks for being part of the community. This marks the end of the October Challenge, with the 50% target being achieved. September challenge was achieved in 4 trading days, October in 6 trading days.

I’ll continue to do these challenges each month…perhaps open it up to some other traders next month if there’s interest as an accountability project. My aim with these is to prove that it’s entirely possible to make steady side income Day Trading, with a reasonably small amount of starting capital, assuming you have the right tools, discipline, and manage position sizing appropriately.

DAY 7 RECAP

Day Profit - $764.14

October Profit - $2506.59

Capital - $7506.59

Starting Capital - $5,000

ROI - 50.01%

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Monday 10th October 2023

ASX Change: +16pts

Day Futures Change: -42pts

Overnight Futures Change: +31pts

S&P Move: +20pts

AUSTRALIA 200

1. Panic gap on S&P obviously changed the days setup and trade plan.

Below are the historical outcomes of large gap downs on Aus200 when overnight futures closed higher.

A couple of observations: a) In terms of EOD ASX change, there has only been 1 outlier when the ASX DID NOT finish positive. The gap down open at 9:50am priced in an ASX change of 0pts (compare this price to 4pm price previous day). b) The 10am-4pm moves are clustered around singles.

Unfortunately, the platform I used for this account didn’t allow me to set limit orders. Tried to long as soon as the market opened, however got executed at 19pts above open. Closed to reassess. Then entered longs around 10am based on the premise that there would be buying pressure on the ASX, with limit buy orders below. Took profit considering expected day highs and given expected market to finish back towards open, which it did.

UK100

• You can see from the below that even the largest falls on the UK100 when S&P panic gaps down, spike initially before falling.

• Set short limit orders each 10pts above open. Only executed at first level. Took ~25pts profit.

  

SPX500

• Took an early short position at gap down, reasonable probability that futures continue to drift lower throughout day.

• Didn’t happen, and part closed the position I had with a horrible entry price, to reset as European open loomed.

• Shorted again once UK100 looked to be rolling over, and not an insignificant probability that SPX could have fallen significantly, at least initially, due to war worries.

• Took quick profit.

  

  

  

  

  

Over the next few days I will reach out to those who have shown interest in the paid daily substack, which will launch next week. Limited numbers so please send me a DM if interested and haven’t already.

Cheers

Marto