SB has been quoting at abnormal prices in the past two sessions. Yesterday I got a reverting signal selling today’s open.

 

We had pattern continuation which is translated in paper losses.

 

The problem is I remember the signal algorithm but I cannot recall of an exit strategy, i.e. a stop loss.

The entry was take the opposite direction of yesterday’s move if the ratio between volume and open interest is 20% above of the monthly [22d] moving average of vol/opInt.

There is good Z for this algorithm, but the stoploss is restricted to 2%. I need a heavier approach to the stop loss, at the least: the same mental effort of the entry algorithm.

As I type, probably I would be trying to hold the position with the hope a possible profit.

 

So, answering to the daily question of “what I am going to do wrong today, how would I lose?” I must be honest that avoiding risk management would be it.

Also I missed the rollover of N to V, which in first instance would stopped the execution process.

  Check it out: [eleven bars of pain, unnecessary pain]