Contents:
- Trade 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 second trade on January 23, 2025, with DDMP REIT Inc. (DDMPR). Below is a detailed evaluation of the trade, analyzing our entry decision, market conditions, and trade management.
DDMPR Daily Chart Showing Key Retracement Levels and Trade Entry.
Trade No. 2 Details
Trade No.: 2/10
Stock: DDMP REIT Inc. (DDMPR)
Trade Date: January 24, 2025
Action: Buy
Entry Type: Anticipatory Entry
Signal: Green Bar
Entry Price: 1.06
Shares Bought: 3,000
Position Size: 50% of DDMPR trading shares
Hybrid 10-Step Trading Strategy Review
1. Market State & Trend Context - Score: 7/10
The stock had been in a sideways accumulation phase but recently showed signs of attempting to hold support at 1.05.
The 20-day MA (1.06) acted as initial support, with the price bouncing off it.
The 200-day MA (1.08) is positioned overhead as resistance.
Verdict: The market structure suggests an attempt at recovery, but overall momentum remains weak.
2. Position, Location & Key Retracement Zones - Score: 8/10
The stock was trading within retracement zones:
50% retracement (1.06) was used as the buy entry level.
25% retracement (1.08) is the first target resistance.
100% retracement (1.03) is the stop-loss level.
The entry at 1.06 was taken at the midpoint of the pullback structure.
Verdict: Good positioning, but requires momentum confirmation.
3. Power Bars & Retracement Strength - Score: 6/10
A green bar formed near the support zone, suggesting an early buying signal.
Volume remains low, which raises concerns about buyer conviction.
Verdict: The entry is speculative; stronger follow-through is required.
4. Entry with Confirmation from Both Strategies - Score: 6/10
The entry was made in anticipation of a rebound, aligning with key retracement levels.
A stronger confirmation would have been a higher volume green power bar.
Verdict: Entry is reasonable but lacks strong supporting signals.
5. Tactical Stop-Loss Adjustments - Score: 8/10
Stop-loss level: Below 1.03 (aligned with 100% retracement and historical support).
A break below this would indicate trend failure and further downside.
Verdict: The stop-loss is well-placed for risk control.
6. Color Change as Secondary Confirmation - Score: 6/10
The green bar is the first sign of a reversal, but it needs follow-through.
If the price closes below 1.05, the trade becomes high risk.
Verdict: Confirmation is pending.
7. Profit-Taking Aligned with Retracement Targets - Score: 8/10
First profit target: 1.08 - 1.10 (near the 200-MA resistance).
Next target: 1.09 (previous retracement high).
Verdict: Logical target placement, but upside potential is limited.
8. Re-Entry at Secondary Retracement Pullbacks - Score: 7/10
If price dips to 1.05 and rebounds, a re-entry could be considered.
Verdict: Further confirmation needed before adding to position.
9. Tactical Position Management - Score: 8/10
Position size at 50% allows room for adjustments.
Verdict: Conservative risk management aligns with strategy.
10. Counter-Trend Trades Only When Retracement Fails - Score: 7/10
If price falls below 1.03, a sell signal would emerge.
Verdict: Stop-loss must be honored strictly.
Final Trade Assessment
Trade Rating: 7.2/10
Pros:
✅ Entry is at a key retracement level.
✅ Green bar confirmation suggests early bullish interest.
✅ Good risk management with a 50% position size.
✅ Logical profit-taking zones set at 1.08-1.10.
Cons:
❌ Volume is low, suggesting weak buyer conviction.
❌ Major resistance at the 200-MA (1.08-1.09).
❌ A stronger entry signal would have been a green power bar with volume.
Next Steps:
Monitor for bullish continuation above 1.08.
Move stop-loss to breakeven (1.06) if price reaches 1.08.
Exit if price closes below 1.05.
Conclusion
This second trade in our 20-test trade series follows the Hybrid 10-Step Trading Strategy, and while the entry was well-positioned, it lacks strong confirmation. The trade will be monitored for momentum continuation, and risk will be managed accordingly. Future trades will focus on higher volume confirmation 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
