Trading LCE Model: A Week in the Trenches

Summary

This is a real-time backtest of the LCE model, focusing on a full week of trading ES futures from June 1st to June 5th to demonstrate in-the-moment decision-making and consistency. The core strategy involves taking only level-to-level breakout trades during regular New York session hours, with consistent risk management across all trades. On Monday, a bullish 1-hour cloud indicated an upward bias, leading to a trade targeting the next level, which resulted in a break-even or loss due to mid-range chop. Tuesday presented a flat cloud, signaling unpredictable price action. A long breakout trade was initiated but resulted in a break-even stop out. Wednesday saw a neutral bias with a flat cloud, but an immediate downward momentum allowed for a successful short trade to the next level. Thursday began with a bearish cloud, favoring a downward move, but a strong upward price spike into resistance was avoided due to the bearish bias and lack of structure, leading to no trade. Friday, with a bearish cloud, saw a quick, successful short trade to the next level due to alignment across timeframes. The LCE model advises stopping after one winning trade per day to secure profits and prevent losses.