BarroMetrics Views: ACT - Positive example II
So, continuing…..To appreciate the effectiveness of the ACT model, you need to appreciate the context of the E-mini trade. My last trade was one that I had suffered the largest loss for sometime, brought about by allowing my Fight, Flight and Fear to buy the highs and sell the lows of the night (constant stop and reversing). Now, my E-mini trade plan was again asking me to stop and reverse.
The difference of course was that for the E-mini trade, the stop and reverse had been thought through. Not only that I had followed the ACT model to ensure I had emotionally accepted the previous losses and had completed the exercises to ensure that I would accept the loss should the stop and reverse prove to be an unprofitable strategy for the trade.
I also completed the visualization execution exercises to ensure that I would not deviate from plan. Just as well because the unexpected poor Non-Farm Payrolls meant I’d have to execute the stop and reverse strategy. Moreover, the ES did not drop to the level where I wanted to take the other 50% of my position. So I had to wear an evening of sideways price action where I had again managed to buy the highs of the trading day.
It would have easy to fall prey to the fears produced by the memory of the NZDUSD trade. The ACT process made it much easier to stay the course. The great news is the long ES trade was liquidated last night and all losses (and more) have been recovered.