StockFetcher Forums · General Discussion · Gossett Trading & Mentoring - 2/12/22 - Review of last week's stock trades & potential stock trade set ups for the upcoming week<< 1 2 3 4 5 ... 6 >>Post Follow-up
nibor100
1,014 posts
msg #158788
Ignore nibor100
3/11/2022 1:21:28 AM

@Cheese,

1. I've watched quite a few of Gossett's videos on his execution of that strategy and it definitely is the way he trades his positions.

2. He makes a point of trying to limit himself to 1 trade a day following that strategy.

3. Many advisors on proper risk for any single trade state: at most risk 2% of trading capital on any one trade but preferably limit it to 1% since no approach is impervious to a string of consecutive losing trades. So scaling in and out is what many accomplished traders do, now that zero commissions exist.

It is also the preferred way to ride a winner as long as possible so you end up a few large winners and most likely a larger number of very small losers.

4. Some of your Sell rules seem to possibly conflict with others due to limited explanation of the Buy points in relation to prior day's close.

5. Is Keltner(200,1) a typo?

Thanks,
Ed S.





Cheese
1,374 posts
msg #158790
Ignore Cheese
3/11/2022 10:57:47 AM

https://www.stockfetcher.com/forums/General-Discussion/Gossett-Trading-Mentoring-2-12-22-Review-of-last-week-s-stock-trades-potential-stock-trade-set-ups-for-the-upcoming-week/158585/10

Gossett Trading & Mentoring - 2/12/22
nibor100 3/11/2022 1:21:28 AM
========================================================

@nibor100,
THANK YOU very much Ed S., for sharing your excellent explanation.
I am glad I asked.

davesaint86
725 posts
msg #158791
Ignore davesaint86
3/11/2022 11:07:22 AM

Nibor - Where do you see the Keltner(200,1) at? It is not correct. He told me personally that he takes at least one trade per day in his personal account based on his analysis of what he thinks has the best risk-reward based on a confluence of multiple buy signals. He told me he risk 1/2% since he has a larger account. He said at age 21 he sold a Chewing Gum company to some investors who used his technology in his gum to produce Zycam. He said he lost over 1 M in six months back in 2001. He said he is pretty conservative when it comes to trading. He is working as a professional trader also and he said in that job he averages 100 trades per day. Just FYI - he is providing me one-on-one training and mentoring (5/3 hour sessions). I completed the first session Tuesday night. He told me his personal mentors have been, Dr. Alexander Elder, Steve Burns and Kelly Lovvon. He said also, he has trained under Larry Williams.

About the sell rules conflicting, please explain. The Deep Dip strategy is just one of his strategies. I asked him when he buys. He said most of the time seconds before the market closes.


3/11/2022 1:21:28 AM

@Cheese,

1. I've watched quite a few of Gossett's videos on his execution of that strategy and it definitely is the way he trades his positions.

2. He makes a point of trying to limit himself to 1 trade a day following that strategy.

3. Many advisors on proper risk for any single trade state: at most risk 2% of trading capital on any one trade but preferably limit it to 1% since no approach is impervious to a string of consecutive losing trades. So scaling in and out is what many accomplished traders do, now that zero commissions exist.

It is also the preferred way to ride a winner as long as possible so you end up a few large winners and most likely a larger number of very small losers.

4. Some of your Sell rules seem to possibly conflict with others due to limited explanation of the Buy points in relation to prior day's close.

5. Is Keltner(200,1) a typo?

Thanks,
Ed S.

davesaint86
725 posts
msg #158792
Ignore davesaint86
3/11/2022 11:10:31 AM

Cheese -I agree. I don't haven't created an improvised approach. I want to learn his strategies first. He stated to me that he trades all timeframes (monthly, weekly, daily, 5-min). What you see on his videos what he actually does.

3/10/2022 6:34:39 PM

https://www.stockfetcher.com/forums/General-Discussion/Gossett-Trading-Mentoring-2-12-22-Review-of-last-week/158585

davesaint86 3/10/2022 9:01:45 AM
Deep Dip Buy Trading Rules
Position Sizing / Emergency Stop
==============================================

@davesaint86
The Gossett approach seems quite complicated, and may be more appropriate for bigger trades,
where scaling in and scaling out would make more sense.
Do you have any improvised fast track Gossett approach for smaller swing trades?
Thanks.


davesaint86
725 posts
msg #158793
Ignore davesaint86
3/11/2022 11:39:03 AM

There is not Lower Keltner(200,1). The Keltner channels are set at (20,1), (20,2), (20,3). There are many ways to skin a cat in trading if you use proper risk management and back test your strategies. I already thought to myself can I incorporate the risk management position sizing/and profit targets when buying over the Ira Epstein strategy. I think one could. Currently, I'm going to learn all of his systems (since he is my mentor) and look to make tweaks her and there if I think they are needed. I asked him for example about being constantly whip-sawed in a market like the one we have now. Meaning, I think personally I would take current market conditions into whether I'm going to take trades that day. He did make a good point. He stated that the using the ATR for the emergency stop, trailing stop and profit targets do adjust to the current volatility. He even proved the point by showing me how the positions sizes are much now then they were months ago.

3/10/2022 10:06:38 PM

https://www.stockfetcher.com/forums/General-Discussion/Gossett-Trading-Mentoring-2-12-22-Review-of-last-week/158585

davesaint86 3/10/2022 9:01:45 AM
Deep Dip Buy Trading Rules
Position Sizing / Emergency Stop
==============================================

@davesaint86

Maybe a simplified Deep Dip Buying approach for small swings could be something like this?

Example $1,000 (1% Maximum Loss based on account size) / 18.41 (2-ATR) = 54.31 shares to purchase
Set Emergency Stop $18.41 below the entry price - If prices goes down $18.41 from your entry,
exit the trade immediately for a $1,000 maximum loss

1. Start with: Determine how many shares to purchase and how far below our entry price will we place our emergency stop
● Determine maximum loss (Example 1% of our total capital)
● How many shares to buy based upon our maximum allowed loss / value of 2-ATR
● Set the Emergency Stop (Risk = 1% of Total Capital which is $100,000. So risking $1,000 / 5.35 (2-ATR) = 187 shares to purchase)


BUY if any of these occurred
● close crossed above MA200 from below and stays above
● RSI crossed above 30 and then stays above 50

SELL if any of these occurred
● price has moved the value of 1.5 ATR from the entry price
● RSI rejected around 70 level
● Sell whenever price moves the distance of .45-ATR from the previous day's close
● Sell whenever price moves below Lower Keltner(200,1)
● exit the trade immediately for loss of 1% of Total Capital or higher

Thank you in advance for sharing your thoughts and experience.

Cheese
1,374 posts
msg #158794
Ignore Cheese
3/11/2022 1:21:37 PM

https://www.stockfetcher.com/forums/General-Discussion/Gossett-Trading-Mentoring-2-12-22-Review-of-last-week-s-stock-trades-potential-stock-trade-set-ups-for-the-upcoming-week/158585/10

davesaint86 3/11/2022 11:10:31 AM
davesaint86 3/11/2022 11:39:03 AM
================================================

@davesaint86
THANK YOU very much, dave for your posts and clarification.

Cheese
1,374 posts
msg #158795
Ignore Cheese
3/11/2022 1:26:08 PM

@davesaint86 @nibor100

Keltner(200,1) was my fault, a misunderstanding of the post on 3/10/2022 9:01:45 AM
Sorry.


nibor100
1,014 posts
msg #158796
Ignore nibor100
3/12/2022 1:20:10 AM

@davesaint86,

I hope you are paying closer attention to your training sessions than you are to my last post in this thread.which you commented on.

I addressed it to Cheese because my questions were specifically related to his recent posts about a simplified Deep Dip Buying approach.

If you reread it I think you'll realize my questions for Cheese were not questions about what you had previously posted.

The questions for you will be coming soon :).

Ed S.

davesaint86
725 posts
msg #158797
Ignore davesaint86
3/12/2022 3:37:24 PM

Nibor - Sorry. You are correct?

nibor100
1,014 posts
msg #158801
Ignore nibor100
3/13/2022 4:04:40 PM

@davesaint86,

These questions are regarding the TradingView Deep Dip Buy trade simulation chart that you posted a link for:

1. On the left upper part of your chart you have a line that starts with "Ratings" and further down you have a line that starts DaveSt RSI Trend.

I assume those are your indicators and if so could you briefly describe them?

2. It appears from the 2 days of Profit Target executions you have described in the text boxes that the 2nd day Sold 10% of remaining shares after the first day sales and not 10% of the original shares purchased. Is that correct?

3. I can't tell which colored wavy lines are which moving averages, could you explain which is the 50day etc.?

4. When I look in the bottom section below the main chart for the rejection of the 50 RSI level I see an RSI section with a descriptor RSI_X3 (Close,5,14,21).

Is that Gossetts RSI and parameters, or yours?

Since the ATRs are based on 20 days why isn't the RSI being used based on 20 days?

5. In a lot of his videos that I've watched he normally would sell only 50% when the close is below the previous day's low, is the reason he sold all was because of the combination of rejected indicators?

6. The 3 profit targets are .45 ATR in succession which by my math is .45ATR .90ATR and 1.35ATR.
His Trailing Stop level is 1.5ATR.

Is there a some specific reason he just doesn't use the same !.35 ATR level for his trailing Stop mode since the .15ATR difference is so minor?

7. Looks like the MACD in the bottom section is using the standard 12,26,9 settings, instead of using the 20 day in any setting position, is there a specific reason for that?

and a Bonus question related to his one on one instruction you are participating in:

Is part of your practice/homework is to watch his weekly recap video for last week and this week to see if you would have made the same trading decisions?

Thanks,
Ed S.

StockFetcher Forums · General Discussion · Gossett Trading & Mentoring - 2/12/22 - Review of last week's stock trades & potential stock trade set ups for the upcoming week<< 1 2 3 4 5 ... 6 >>Post Follow-up

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