To The Moon

To be honest, I don't think I've been net profitable with parabolic short trades over the years. It's something I'm still working to refine and improve. The trading strategy is extremely lucrative on intraday basis but I would strongly advise against attempting this strategy if you are still refining a long strategy, especially on trading days when you're already focused on multiple stocks for execution.

A few reasons;

1) Parabolic short setups trigger entries and stops very rapidly (you could be stopped out within seconds of entry), it's natural for human instinct to kick in and try to re-enter the trade immediately. For example, you might get stopped out on the first entry at the Opening Range Low, then again on a second entry at the VWAP rejection, and perhaps a third time at the 15-minute Opening Range Low. 3 Losing trade can occur in mere 30 mins. This urge for revenge trading can take over during the day, potentially undoing the work and profits you've accumulated over the past week with just this one short trade idea.

2) Because of the rapid entries and stops, the only way to achieve precision is by solely focusing on that one chart, particularly within the intraday opening range of your desired entry. without interference or attention to price alert of other setups. The missed setup that you forgo on that session may actually be profitable instead.

3) Slippages can be significant, sometimes as much as 0.3R on nano or micro-cap stocks, which can distort your risk-reward ratio. In some cases, when your sell stop is triggered, the order may not even be filled because your broker may not have enough shares available to borrow for the short when the entry happens at that specific juncture.

4) Multiple halts also frequently occur intraday and at times it may just re-open above your tight stop, causing loss exceeding your initial risk you catered.

5) When the short idea comes to you pre-market, your broker may not have the shares available to borrow. It becomes a strategy idea that u can't consistently apply on to churn some quantifiable metrics in the long run.

6) I need to retaliate point (1) again, this setup is highly addictive to re-attempt after the first intraday stop and it can severely erode your monthly performance just on that 1 short idea.

I highly recommend checking out @stamatoudism tweets on his parabolic short ideas, especially his $SUPER MICRO COMPUTER INC(SMCI)$ and $Tiger Brokers(TIGR)$ trade from this year—they were spot on as he posted immediately pre-market before the short occur. I myself was two days too early on TIGR, even though it was extended at 26x ATR% from the 50-MA, so don't rely on those multiples as short signals. Even for my $Fangdd Network Group(DUO)$ short I felt I was lucky because it was the first to collapse 2 days ahead of 90% of other extended China names. ATR% multiple extension from 50-MA is solely useful for scaling out profits of your existing position, and avoidance of attempting long entry at such extended level.