CASE STUDY – LIVE TRADING MES – WAVE TRADER 2.0 STRATEGY as of 10/4/24

COMBINE: S1OCT47176519 October 4, 2024

CASE STUDY – LIVE TRADING MES – WAVE TRADER 2.0 STRATEGY as of 10/4/24

INTRODUCTION: I am a 9-year, 25,000 HR live Futures trader who has been using TST to test my algorithm layover apps, rather unsuccessfully, I may add. I have been with TST for approx. 5 years.

I trade a live brokerage account which is my main source of income.

CASE STUDY STATED GOAL/STRATEGY: Today I decided to setup a trading experiment. Trade 10 micros on the MES to $ 1505.00 USD, the 50% goal of a $ 50K combine. I would use my ‘Wave Rider 2.0’ trading strategy on the 1-minute chart, buy red bottom/sell blue top at previous visual resistance areas; I would DCA (dollar cost average) my entrances and exits starting with 1 micro and adding as the market told me to ie. Break to high, break to low, buy red bottom and add near/at profit BE (break even). DCA risk mitigation – sell 50% of holdings every $ 100.00 value, or thereabouts. Sell remainder at wave break and sell against trend only to max of 2 contracts.

MARKET ENVIRONMENT: VIX 19.3%; US employment data released at 8:30 am EST; positive day for MES at time of writing. Port workers strike delayed to Jan. 2025. Check financial juice and/or TSTX for additional market conditions at time of writing.

PHYSICAL/RISK ENVIRONMENT: current model Samsung cell phone; data – LTE/5G; TSTX phone app; RISK - auto liquidation @ $ 1505.00; no PDLL set; position risk - $ 13.00 risk/$20.00 profit; used combination of Buy/Sell button and DOM – rational and risk = time available to place trades/speed of market/DCA.

EXECUTION: ? all prices are approx. ; 80% risk capital allocated to the upside trend – bias, impetus, proclivity observed to upside; market had come off its lows at 5752; @11am was in the 60 range when entered = DCA 5 micros, continued buy/sell Wave Rider strategy to approximately 13:10 HRS; distracted and did not exit – held 10 micros from 81 to 66 NOT PART OF MY STRATEGY – NOTE TO SELF – DO NOT GET DISTRACTED/SET STOP/SELL to mitigate risk upon unavoidable distraction.

***DO NOT STOP DOING MENTAL MATH CALCS TO MITIGATE RISK/KEEP MIND IN GAME***

Market recovered to 81.75 at approximately 13:45, held position, account @ $1120.50 ; UP&L approx. $ 0. Resting order placed - sell 5 contracts at 84, missed first opportunity at 84 to sell – distracted writing this case study ??, held 10 contracts thru 4 legs of 2 waves. Rational – I will typically only risk 50% of my banked profit (RP&L) before exiting my position when trading ‘live’, 3rd leg down from 14:00 – 14:15 = -$500+; correction down to @ 67 $ -617, held because wave ‘appeared’ to break 2 ticks (higher low) HOWEVER my rule is 3 ticks+ is ‘bias indicator’ for possible new wave/direction change when HL/HH or LL/LH presents. Market moved to upside breaching 72 in 3 minutes – 20 ticks/3 minutes = RR (rise/run) ‘excellent’ @ 9s/T (9 seconds a tick); NTS (note to self) – watch for next wave to be HL (higher low); was a HL 74 to 76, continued to hold 10 contract position; RR continued at 9s/T; consolidation/resistance @ 77 @ 14:30 HR risk? = expected result; broke to upside @ 14:35 and continued expected RR; 52 ticks/1800s = 35s/T (mental math), good RR; still holding, written at 14:47 HR - expecting close to/at 5800 @ close (horseshoes and hand grenades!); resting orders at 82 thru 82.5 filled – holding 9 contracts @ 14:55; Sold 5 @ 14:52HR @ 84, RP&L $ 1124.00 = avg. FI/FO (first in, first out) NTS – wasted 1 HR of profitability!!; Sold 4 15:09 UP&L $ 1236.94, @ 85.5; was tempted to add in 5 more contracts but my rule for live trading is to be out of the market @ 15:30 HRS at the latest; HOD 5802.50 BTW; held 5 to goal = $ 1502.59 @ 15:32HRS.

RESULTS: 4.5 HRS, $ 1500.00 USD. Min. risk except the lost hour due to a distraction that was not handled properly.

Extrapolated income - not advised, for comment only. $ 180K a year+ USD based on withdrawing ? of your TST earnings. Is every day going to be a $ 1500.00-day, no. Are some going to be larger, some smaller, yes. What is the average? You need to answer that one.

Does every trading day allow for a 50-point range, no, that is why you would employ the wave rider trading method. Can you add additional contracts, yes, based on your risk tolerance and trading acumen ie larger combines/XFAs.

Your profit is what the market is telling you, you can have. No more, no less.

You can email me if you have any questions.

TraderBrian.

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