SMB Futures TOTD – 5/14/18

Merritt BlackFutures, Reading the Tape, Technical Plays

Yes, the Trade Of The Day, the TOTD – (pronounced “toddy”)

We’re going to be bringing you fresh TOTD’s each day that highlight a real trade taken by one of the traders from the new SMB Futures desk. So let’s dive into today’s TOTD.

5min chart: 6E Futures

The market and key variables:

Our trader was watching Euro/USD currency futures, or the 6E for those in the know. He had:

    1. A key level 1.20050, which broke down convincingly, and held on a retest.
    2. Price had gotten below VWAP, and was currently retesting it from below.
    3. Saw quality R:R ratio into the next support level quite a ways away.
  1. Saw a key shift in orderflow to pull the trigger and effectively manage risk.

Prices and result:

  • Shorted 1.20050 and covered later at 1.19780
  • A quality +54 ticks
  • All in- all out trade management
  • 3:1 R:R achieved
  • Nice job sitting through the LONG consolidation as his trade thesis was NOT invalidated

Areas for improvement?

  • The trader’s initial plan called for a larger target into a lower support level. The market easily reached this larger target, and the trader is currently working to improve his own understanding of a quality trade management process that makes the most sense to him.

Trade well,


*No Relevant Positions

Important Disclosures