Contents:
- Trade No. 1 Details
- Hybrid 10-Step Trading Strategy Review
- Final Trade Assessment
- Next Steps
As part of our planned 20 test trades using the Hybrid 10-Step Trading Strategy, we executed our first trade on January 23, 2025, with RL Commercial REIT (RCR). Below is a detailed evaluation of the trade, analyzing our entry decision, market conditions, and trade management.
RCR Daily Chart Showing Key Retracement Levels and Trade Entry.
Trade No. 1 Details
Trade No.: 1/20
Stock: RL Commercial REIT (RCR)
Trade Date: January 24, 2025
Action: Buy
Entry Type: Anticipatory Entry
Signal: Bullish Pin Bar
Entry Price: 6.00
Shares Bought: 200
Position Size: Remaining 20% of RCR trading shares balance, completing the RCR portfolio allocation
Hybrid 10-Step Trading Strategy Review
1. Market State & Trend Context - Score: 7/10
The stock had been in a downtrend from November to December 2024 but recently showed signs of reversal.
A double-bottom pattern had formed, suggesting a potential bullish shift.
Moving Averages:
The 200-day MA (5.61) remains below the price, indicating long-term weakness.
The 20-day MA (5.89) was tested as support, hinting at an upward resumption.
Verdict: Mixed signals, but recent price action suggests bullish potential.
2. Position, Location & Key Retracement Zones - Score: 8/10
The stock was trading within retracement zones from previous highs:
30% retracement (5.89) held as support.
41% retracement (5.94) was tested before entry.
66% retracement (6.09) remains a major resistance.
The entry at 6.00 was within the acceptable retracement range.
Verdict: Good entry zone, but strong resistance ahead.
3. Power Bars & Retracement Strength - Score: 6/10
A bullish pin bar formed at the 20-MA, aligning with a retracement level.
No strong green power bars yet, but higher lows suggest accumulation.
Verdict: Entry is based on anticipation; confirmation is required.
4. Entry with Confirmation from Both Strategies - Score: 6/10
The entry was taken in anticipation of a breakout due to the pin bar signal.
Stronger confirmation would have been a break above 6.05 with volume.
Verdict: Slightly aggressive entry, but acceptable within strategy.
5. Tactical Stop-Loss Adjustments - Score: 8/10
Stop-loss level: Below 5.89 (under the 30% retracement and 20-MA support).
A break below this would indicate a failed trend reversal.
Verdict: Stop-loss is well-placed for risk control.
6. Color Change as Secondary Confirmation - Score: 6/10
The pin bar suggests a reversal attempt, but a green power bar is needed for confirmation.
If the price closes below 5.89, the trade becomes high risk.
Verdict: Confirmation is still pending.
7. Profit-Taking Aligned with Retracement Targets - Score: 8/10
First profit target: 6.09 - 6.15 (retracement resistance zone).
Next target: 6.29 (previous 100% retracement level).
Verdict: Targets are logical within the resistance structure.
8. Re-Entry at Secondary Retracement Pullbacks - Score: 7/10
If price dips to 5.89-5.94 and rebounds, re-entry could be considered.
Verdict: Further confirmation needed before adding to position.
9. Tactical Position Management - Score: 8/10
Position size at 20% keeps risk controlled while testing the setup.
Verdict: Conservative position sizing aligns with risk management.
10. Counter-Trend Trades Only When Retracement Fails - Score: 7/10
If price falls below 5.89, a sell signal would emerge.
Verdict: Stop-loss should be honored strictly.
Final Trade Assessment
Trade Rating: 7.2/10
Pros:
✅ Entry is at a key retracement level.
✅ Pin bar confirmation suggests bullish momentum.
✅ Good risk management with a 20% position size.
✅ Logical profit-taking zones set at 6.09-6.15.
Cons:
❌ No green power bar confirmation yet.
❌ Major resistance overhead at 6.09-6.15.
❌ A safer entry would have been above 6.05 with volume confirmation.
Next Steps:
Monitor bullish continuation above 6.05.
Move stop-loss to breakeven (6.00) if price reaches 6.09.
Exit if price closes below 5.89.
Conclusion
This first trade in our 20-test trade series follows the Hybrid 10-Step Trading Strategy, and while the entry was slightly aggressive, it aligns with retracement principles. The trade will be monitored for confirmation of bullish momentum, and risk will be managed accordingly. Future trades will focus on stronger confirmation signals before entry.
Disclaimer: This post is for informational purposes only and should not be considered financial advice. Always do your own research before making any trading decisions.
Related Readings
- Micro Stock Trader: Comparing the Modified 10-Step Trading Strategy vs. Retracement Trading Strategy
- Micro Stock Trader Portfolio Tracker Page
