Oct 25

Review of open positions 10/24/2014

This past week was interesting. It seems like all of my past trades, since the opening of the blog, are gone. Most equities are all brand new , free to win or fail. This week is almost like a clean beginning. The other interesting development is that I have codified my rules. Note: My rules. Interesting thing, you can follow other rules, but you have to work them and tweak them. so they work for you. In a way, It looks like we are finally ready to do better. The question, is now, can we maintain discipline?

Here are the rules that we have codified.

Another attempt at basic common sense money making rules for a systematic approach for doing well in equities:

Entries:

  1.  New 52 week high., (Prefer new all time high)
  2. Stock in uptrend
  3. In consolidation period prior to buy. 3a. On recent gap up: Completed backtest with bullish engulfing candle
  4. Limit buy order on prior day closing price.
  5. Risk/Reward maximum 10% Upward rising 50DMA and 150DMA. ( Avoid buying on recent multiple 50DMA penetrations, unless there are significant rebounds on back tests during weak market action.

 

Trade Management:

  • On Breakout. Raise stops to new pivot low closing price, below 50DMA
  • On Weakness. ATR below 50DMA or 20 day break of Donchian channel below 50 DMA.

Exit:

  1. Break of 50 DMA more than twice in a short time period and stop loss penetration.
  2. Break of 50 DMA, on volume with EOD close to LOD and stop loss penetration.

 

Market Management Stop. (Execute prior to closing)

Any loss or move greater than 5%:

  • 2 days in a row.
  • Negative News with volume significantly  greater than normal.
  • On move greater than ATR.
  • (Differentiate between flash crash or market participants fleeing by no recovery at EOD from LOD.

 

Each trader has different position sizing, risk parameters and execution prices which will change overall  portfolio return. We do not give financial advice. Trade at your own risk. We are not responsible for any losses you may have by following our blog. We are only making known when we enter or exit a stock.The numbers that we are disclosing are a record of entries or exits made since the start of this blog. We may or may not reveal each stock that we own or are following  We may not disclose other transactions not mentioned on this blog. The prices mentioned here may or may not reflect our actual transaction execution prices. Percentages may represent an aggregate of stock holdings. Calculations may not be accurately reflected. Trade at your own risk. We are not responsible for any losses you may have by following our blog.

 

 

SUMMARY AS OF 10/24/2014 
OPEN POSITIONS:- Total 15:  10 winners,5 losers. Average win +4.1%, average loss -11.%.
 
OPEN POSITIONS AS AT 10/24/2014
Position Opened Closed % loss % gain
Long $NQ 3/24 -48.6
Long $NKE 08/25   13.60
Long $AAPL 9/9  4.3
Long $VRTX 9/23  5.4
Long $BAH 2.50
Long $COV 10/8 -4.1
Long $MNST 10/7 6.10
Long $CMN 10/14 -2.3
Long $CSX 10/15 8.00
Long $JNS 10/15 6.70
Long $ROST 10/15 4.50
Long $LB -0.01
Long $BABA  4.0
Long $BLL  -1.7
Lomg $NAV 0.10
-55.01 41.50

 

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