Use Named Setups To Improve Data Tracking

If you’ve been reading for a while, you know that I like to use very clearly defined qualifiers for what determines a setup.

I’m sure you’ve heard that trading is more art than science, which means there are gray areas. This is the kind of stuff that can trip up new traders.

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The Big Picture

I constantly harp on students and followers about tracking data and journaling. I’m religious about it.

That’s because we have very distinctly delineated criteria that name patterns. And if you know that criteria, then every trade you take, you can tag with the named trading setup.

Now, for more experienced traders, this is a recap. But I can’t tell you how many traders come to me with questions about a trade and all they’ve written down is entries and exits.

Two Reasons for Distinctly Named Patterns and Setups

The first reason is obvious, the second reason is part of what trips people up.

1. If you know what to look for and can name it, then you can trade it.
2. Data tracking

Let’s unpack that…

A lot of the time, when people first get started, they hear “data tracking” and the first question that comes to mind is…

How do I actually do that?

One of the most important things for tracking data is tagging. And that is made possible by having named setups.

Now, I’m sure you’re already familiar with tagging because it’s all over social media. But when it comes to databases, tagging is extremely important. You tag data so that you can go back and look it up. You can see how and why the data is tagged.

It’s the same for named patterns, okay? Tagging is how you turn your trade journal into a database that you can use to make better trades.

Let’s say you make five trades tomorrow. Now, that’s probably way too many for a newbie trader. But as a hypothetical, you have five trades you make.

Now, if you have named setups you can tag each one of those trades with the name. Then you’re able to track your data.

For example, you see that the RCT didn’t work for you but the dip and rip did. That weak open red to green didn’t work, but the afternoon VWAP hold did.

This is very important when it comes to tracking data. If you’re just putting in entries and exits, it’s noise. You can’t find the signal in the noise.

By using named setups and tagging, you can review your data at the end of the day, week, or month. You can even look back years later and know exactly what setup you traded. You can see what’s working and what’s not. That way, you can make the modifications that make trading an art.

My Take

Again, I’m religious about tracking data. All the best traders I know, including Matt Monaco, Bryce Tuohey, and Ben Sturgill… ALL track data.

So, if you want to improve your data tracking in one easy step, always name the setup and tag the trade when you journal it.

Watchlist

Sky Quarry Inc. (NASDAQ: SKYQ) is another many times former runner with a lot of one-and-dones on the daily:

Yesterday (July 7) SKYQ was my Daily Market Profits Alert with a signal at $2.51, risk at $2.40 and a target into major resistance at $2.95. My plan called for using the 9:45 rule.

Here’s the chart:

Even though SKYQ didn’t hit the $2.95 target, there was a potential or 3:1 reward-to-risk.

Also note that SKYQ bounced off the risk zone at 10:20 a.m. when it dropped to $2.39 a share for a few seconds. So, you could have been stopped out. That’s trading.

On My Radar

• Why it pays to wait for the market’s reaction: Samsung’s big jump in Q2 operating profit led to a chip stock selloff
• Even large-cap companies need cash to grow and some do offerings like this
• Anthropic announced yesterday (July 7) that Claude Cowork is coming to mobile and web. My friend, I’ve been saying it for a while: Own your hardware, own your data. Higgins agrees