BOIL Day Trade Recap and ReviewBOIL the 3x Leveraged ETF of natural gas futures has been highly volatile. Volatility yields high
profits if there are good entries and trade management. This past Friday BOIL was doing a
reverse split ( 20 shares become one) which I considered to be an opportunity for high profit
because a higher number of traders would have eyes on the chart.
The 15-minute chart is shown here with an anchored VWAP from 2 days earlier. At market open
price reversed a downtrend after the reverse split in the premarket. It got support from the line
one standard deviation below the mean VWAP. My first considered entry was the second green
HA candle in the reversal with a stop loss at the pivot low of the red candles. However
I passed on this entry and instead entered upon price crossing the mean VWAP. The entry
was supported by the indicators showing Z score and volatility. The entry was made more
precise by analysis on the 5-minute chart. The stop loss was set at the value of the close of the
last candle to close below VWAP. After that, trade management was routine. Every time
price went up 1% I raised the stop loss by the same amount until getting up 6% Once at that
level, I changed to a trailing stop loss of 2% so I could pay attention to other trading chores.
At the same time, I set an alert for when the price crossed to above two standard deviations
above the mean anchored VWAP. I did this because this is the overvalued overbought area
where institutional traders will set sell orders either short selling or closing profitable
trades. The resultant reversal would diminish my unrealized profits. In this case, I got
the alert and closed the position without the trailing loss. The trade resulted in a profit
of 12% without use of leverage or margin other than the leverage imbedded in BOIL inself.
