StockFetcher Forums · Filter Exchange · NEW SYSTEM WITH INTEGRATED 5% STOP LOSS<< 1 2 3 4 5 >>Post Follow-up
Kevin_in_GA
4,553 posts
msg #112210
Ignore Kevin_in_GA
3/13/2013 12:42:54 PM

@johnpburke:

Good catch - the filter I had posted did not have the "rsi(2) 1 day ago below 20" line that is necessary to match the other filter. I have corrected my ealrier post. Only AVG yesterday, and only NTWK so far today.

Kevin_in_GA
4,553 posts
msg #112211
Ignore Kevin_in_GA
3/13/2013 12:57:00 PM

AVG - 1562 shares at $12.80
UPDATE: 5% stop loss hit today at $12.16 (low so far for today was $12.11)


Kevin_in_GA
4,553 posts
msg #112213
Ignore Kevin_in_GA
3/13/2013 2:42:56 PM

and for today we see

NTWK - 1818 shares at $11.00 (currently at $11.09)
UPDATE: Wow. This one also hit its 5% stop loss (current daily low already hit $10.20, stop was at $10.45).

Kevin_in_GA
4,553 posts
msg #112217
Ignore Kevin_in_GA
3/13/2013 4:17:10 PM

Looks like we are in one more toward the close today:

SLCA - 870 shares at $23.00

Kevin_in_GA
4,553 posts
msg #112223
Ignore Kevin_in_GA
modified
3/14/2013 9:46:40 AM

Might make sense to track equity on this, assuming a starting equity of $100,000 and a fixed trade amount of $20,000.

AVG - stopped out for a loss of 5% (-$1,000)
NTWK - stopped out for a loss of 5% (-$1,000)
SLCA - in at 23.00 (stop loss at 21.85, which just was taken out at the open of 21.65, so another 5% loss, -$1,000)

Currently equity is $97,000.

Without stop losses in place, we have the following:

AVG - in at 12.80, now at 12.58 (-1.7%)
NTWK - in at 11.00, now at 11.48 (+4.4%)
SLCA, in at 23.00, now at 21.93 (-4.5%)

I'll keep an eye on this - I would prefer to double down at 5% rather than cut losses, but let's see how this plays out.

ADDED IN REVIEW:

Here is what it would look like if you doubled down instead of taking the stop loss:

AVG - in at 12.80, now at 12.58 (-1.7%)
AVG - in again at 12.16, now at 12.58 (+3.4%)
NTWK - in at 11.00, now at 11.48 (+4.4%)
NTWK - in again at 10.45, now at 11.48 (+9.8%)
SLCA, in at 23.00, now at 21.93 (-4.5%)

Big difference ...

ohbie1
2 posts
msg #112228
Ignore ohbie1
3/14/2013 11:05:34 AM

Hi Kevin, new to SF (couple of weeks). I've been reading all your material and thanks. I've been trading on this Connors idea using scale in as recommended in a blog on his website. He says 10,20,30,40 is the safest. I've been using 33,33,33, and have had 4 losses out of 36 thus far. I could have avoided 2 of the 4 losses but I was impatient. Of course if the stock turns around immediately, it's only 1/3 the profit, but the few losses are very encouraging. It's nice seeing all the green boxes on the spreadsheet.

Frank

blumberg
27 posts
msg #112229
Ignore blumberg
3/14/2013 11:10:36 AM

Kevin,

The loss for SLCA would have been greater than 5% (or $1,000). It would have been a loss of $1174.5.

A 5% stop loss won't protect you if the stock gaps down beyond 5%. Does your backtest account for this?



Kevin_in_GA
4,553 posts
msg #112235
Ignore Kevin_in_GA
modified
3/14/2013 12:10:05 PM

Probably not - it depends on how gaps down are handled in SS. Nonetheless, I think the better approach is to buy a second lot (if you have the available cash to do so) when the trade moves against you 5%.

Noticed that three more trades were signaled for today -

CLF - 936 shares at $21.37
WLT - 695 shares at $28.77
DDD - 665 shares at 30.08

EDIT: I am not including DGAZ which shows up since it is an ETF and I should have been screened out.

oldsmar52
104 posts
msg #112248
Ignore oldsmar52
modified
3/14/2013 5:47:56 PM

For Ohbie: When you say Connors recommends 10,20,30,40, what is it you're talking about? And, you're using 33,33,33? You are talking about percentages I'm sure, but how are they applied? Thanks, Frank

Kevin_in_GA
4,553 posts
msg #112263
Ignore Kevin_in_GA
3/15/2013 3:29:00 PM

Well, DDD hit its stop loss today, and if you had automatically entered a stop loss after your limit order entry on MDXG you are busted as well. So far 5 of 7 trades have hit their stop losses.

I don't think this is representative of forward trading, since the system was tested against the past 13 years and hit amazingly well. I am considering this a rough patch right now, which just happens to be right out of the gate ...

StockFetcher Forums · Filter Exchange · NEW SYSTEM WITH INTEGRATED 5% STOP LOSS<< 1 2 3 4 5 >>Post Follow-up

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