MLGO loss (-$22,000 on day)

We've all been there. It's emotionally brutal. The mistake was removing the max daily loss which is breaking a promise to yourself, then becoming rewarded for breaking a promise to yourself. -10K to -6500. You're essentially becoming emotionally compromised and highjacked

You will get back man👍, it’s part of the game

aint even that bad. don't crash out from one loss

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You back tested a max daily loss so it's a trusted part of your system. You have to follow through on that. When you arbitrarily raise it you're stealing your sample size. Trust your numbers and don't deviate mid-trade. If you need to make changes, wait until the trade concludes and make a new plan for the next trade. Other than that you did as good as anybody today on MLGO. You got this.

"I didn't want to get faked out". Recipe for uncontrolled losses.

The feedback I’ll provide is more contextual than it is regarding your setup as I’m actually more of a frontside trader, but I can at least share some insights on what I’d be thinking trading the other side: Context 1. It seems the context is not +EV for small cap parabolic short setups right now because very few tickers are fading on day 1 2. I can confirm this from my X feed that is full of parabolic short guys struggling all of February (it almost seems like everyone is trading the same way/same tickers and the EV of setup goes down due to overcrowdness similar to how Mag 7 is underperforming now that it is a crowded trade) 3. Instead of traders sizing down and trading less when the trade starts getting away from them, the EV of a setup for mean reversion increases the further it extends making it difficult for you to step away, but this also introduces insane losses due to black swans on tough tickers when it never mean reverts and also increases the likelihood of a trader tilting/redlining the more they continue to fight it ($AIFF another ex) 4. I would encourage a max attempts per ticker rule - though it seems the EV goes up the more parabolic it gets, I don’t believe this to be true. The longer a trend continues, the more conviction I have that it’ll finish at high of day as the tape often just picks up more speed the more shorts that step in (you’ll prob find your best trades never even break above premarket highs when the ticker acts right or you at least have a solid core position to trade around) Regarding Setup: 1. My issue with parabolic shorts is traders are often guessing where backside is vs waiting on displacement/price action to show you (if it feels like you’re forcing vs feeling effortless, it probably is) 2. If you only go off how overextended a move is, a move can looked overextended without reverting much longer than you can stomach 2. If you want to trade backside, I think you have to wait on some sort of displacement of market structure - the EMA crossover/trend line break is what I use to time my exits (see pic below) 3. If you’re more of just a PA guy and want to be in from the top of the move vs backside, I saw one spot where I’d be covering profits based on price action alone and I’ve included another chart of PLTR as well. When I see that candle structure, I’m always taking profit as soon as the next candle opens below the body. That pattern seems to have a high probability of mean reverting and it also gives you a defined stop) Best of luck to you! Trading’s hard 😅

Sorry man. Looks really similar to all my big losers. Just eliminate “I don’t want to get faked out” you can’t predict it no matter how much you think it will or won’t fake. Otherwise great executions especially at the beginning.

you did nothing wrong imo..thats your style, everything respected, its just sucks(the loss), thats it... I mean cmon man, rig level 11/10, on this ticker 99.99% out of the 99.99% profitable traders most likely lost on the short side.

yeah, rough day indeed.

Followed, love the transparency!