EXAMPLE OF ORDER ENTRY:
DATE: FOR PLAY MARCH 10,2003 (at market opening)
ORDER ENTRY FORM:
|
STOCK |
LONG/SHORT |
BUY LIMIT |
SELL LIMIT |
STOP |
INVALID IF PRICE |
|
|
|
|
|
|
|
|
|
|
|
|
KO |
S |
37.35 |
37.65 |
38.08 |
>38.15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1) Invalid price: price must not be more than delta above yesterday's high.
INDICATORS FOR TODAY:
20 DAY EMA: NEG
10 DAY EMA: SLOPING DOWN
MACD-H (12,26,9): TICKING DOWN
STOCHASTICS (4,3,2) : OVERSOLD (hooking up)
CHEATSHEET:
|
20 ema neg |
||||
|
10 ema + |
10 ema neg |
|||
|
MacdH + |
stochastics |
Stochastics |
||
|
Not overbought |
Overbought |
Not oversold |
Oversold |
|
|
BUY |
SELL SHRT |
SELL SHRT |
BUY |
|
|
Macdh - |
Stochastics |
Stochastics |
||
|
NOT OVERESOLD |
OVERSOLD |
NOT OVERSOLD |
OVERSOLD (TRENDING) |
|
|
SELL SHRT |
BUY |
SELL SHRT |
SELL SHORT |
|
DATA FOR TODAY: (from spreadsheet)
|
STOCK |
Proposed R/R |
2 day ema of Highs |
2 day ema of Lows |
Ave. Channel width |
Channel Delta |
Channel Bite |
|
|
|
|
|
|
|
|
|
KO |
.70 |
37.76 |
37.04 |
.88 |
.31 |
.26 |
|
|
|
|
|
|
|
|
Exit was calculated (by spreadsheet) as 35% of channel + 2 day EMA of lows.
Entry was calculated as price which would give .7 R/R with exit at 37.35 and stop at 38.08.
Whichever gives greatest R/R, standard bite or .7 R/R.
If over 10 trades we get 70% wins at an average of .7 R/R per winning trade, and -1.0 for each losing trade, this gives us (.7x7)-(3x1)=1.9 expectancy for 10 trades or .19 per each trade. This works out to about 100% return per year if we use a constant position size of 2% of equity and average one trade per day (takes about 4 stocks in our "toolbox" to do this). Breakeven is about 60% wins.
UPDATE: 10:00 am est HOD SO FAR WAS 37.60, ...
UPDATE: 16:00 EST Did not trigger, never reached 37.65
We did not have the other three stocks in our toolbox "online" today. Just this one. A note on trending:
