Intraday Strategy (1106 Fri)

An independent exercise, not a statement by the video creator or verification of every claim in the video.

When the previous-close loss narrows, what is the return from entry?

This is a hypothetical calculation, not the actual session’s index or a recommended trade. Let the previous close be 100, entry occur at 94 after a 6% decline, and exit at 97, still 3% below the previous close. The reported loss narrows by 3 percentage points, but the return from entry is (97 − 94) ÷ 94 × 100 ≈ 3.19%. If 10% of account assets immediately before entry is allocated and the remaining 90% stays unchanged in cash, the account contribution is approximately 0.319%. If instead price falls from the entry of 94 to 90, the trade return is (90 − 94) ÷ 94 × 100 ≈ −4.26%, contributing about −0.426% at the same allocation. Further declines remain possible after a rebound; index moves, product returns and whole-account performance use different denominators.

Check for yourself

1. Is the return denominator the previous close or the actual entry price?
2. Have you specified the allocation’s reference time, changes in other assets, tracking differences and costs?

Limits of application

This assumes exact execution in a hypothetical unleveraged trade without borrowing. Fees, taxes, slippage, tracking differences and cash interest are excluded, and other assets are held unchanged. It validates neither the low, rebound probabilities nor strategy profitability, and does not imply an index can be traded directly.