Today we will look at the break down of the $COST and TT Blackbox from the swing trade alerts the TT Blackbox produced on 3/26/2020. We will look at the Time the swing trade alerted and the entry/exit strategy. For Swing Trades the algorithms are designed to look for 2 days to a week setups.
The leading warehouse club, Costco has 782 stores worldwide (at the end of fiscal 2019), with most of its sales derived in the United States (73%) and Canada (14%) and a large presence in Mexico, the United Kingdom, and Japan. It sells memberships that allow customers to shop in its warehouses, which feature low prices on a limited product assortment. Costco mainly caters to individual shoppers, but roughly 20% of paid members carry business memberships. Food and sundries accounted for 40% of fiscal 2019 sales, with ancillary businesses (such as fuel and pharmacy) 19%, hardlines just over 16%, fresh food 13%, and softlines 11%. Costco’s warehouses average around 146,000 square feet; over 75% of its locations offer fuel. About 4% of Costco’s global sales come from the e-commerce channel.
Transparent Traders created the first-ever solution that specifically alerts for swing trades. It will also alert for bullish & bearish day trades. Our Blackbox runs off of multiple algorithms and uses predictive A.I. to locate the most accurate day or swing trades that it calculates to give the best chance for success. Couple this with proper Due Diligence and our users are given the edge needed to be more successful in the trading world.
The TT Blackbox Alert & the Trade
Based on the pictures below you can see the TT Blackbox alerted $COST as a Bearish Swing Trade on 3/24/2020 at 11000. The initial TT Blackbox alert is circled in PINK on the chart below. The RED circles represent where I scaled into the Bearish trade 2 times on Tuesday per my scale in strategy. The BLUE circle is where I closed (EXITED) my position on Wednesday 3/25/2020. The Bearish Swing Trade alert from the TT Blackbox allowed me to capitalize on a 6.3 point decrease in price, after my 2 entries based on the Scale in Strategy.
For all of you wanting to know how I decide to enter and exit my trades, I have listed those key points below:
- I have created a watchlist of the tickers I like to trade the most. Download my watchlist right “HERE”
- I review that watchlist against the alerts from the TT Blackbox each 5-minute interval.
- I focus on the $VIX. This measures volatility in the market. If volatility is moving up, the market is moving down, and vise versa. This simply means I start here and does not mean I will not trade against the market. However, I do not recommend that for the novice trader.
- Once I know the direction of the market, I start to focus on my tickers that are moving in that direction.
- Once these tickers alert on the TT Blackbox, I typically wait till the closure of the next 5-minute candle and I enter.
- I then immediately set a limit sell order for 5%. Keep in mind I am trading shares in the price range of $30-$400 tickers so 5% is big money.
- I exit my trades based on two points. One, being the TT Blackbox stops alerting or alerts in the opposite direction, and two being my 5% target has been met.
Here is a screenshot of the tickers I watch daily:
Day trading is more suitable for investors who are not novice traders, have significant experience trading for several years and have the proper mentality to sustain intense stress levels due to the daily volatility in the financial markets.
Swing trading is a more balanced way of trading, as it does not require constant monitoring of financial markets, and at the same time, it offers the potential for risk-adjusted trades with potential profitability. It’s not easy to claim that one trading activity is better than the other one. Each type of trading has its pros and cons.
The main factor to consider is how much time and effort you’re willing to commit to monitoring the stock market or other financial market sessions.