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
davesaint86
720 posts
msg #158585
Ignore davesaint86
2/12/2022 6:55:35 PM

2/12/22 - https://www.youtube.com/watch?v=UUP1XjE1VOc&t=1s

davesaint86
720 posts
msg #158599
Ignore davesaint86
2/15/2022 5:37:25 PM

https://www.youtube.com/watch?v=i2j29_L4GEQ

nibor100
938 posts
msg #158629
Ignore nibor100
2/20/2022 2:21:46 PM

@Davesaint86,

I watched both of those videos, Thanks for posting the links as that guy seems to be a meticulous trader and really follows his trading plan.
Trades every day but it very prudent about it...

As usual I have a few questions you might be able to answer:

1. Around minute 49 of his feb 12 market review he talks about liking the fact that Apple is in the Value Zone but goes to indicate its not ready to be traded yet.

a. Is his Value Zone just the area between the two 1 ATR channels?

b. Since from watching his videos I know he likes trades near the -3 ATR channel, which seems to be quite a ways from his Value Zone, what purpose does the Value Zone serve?

2. In his review of recent trades he's taken he discusses Daily bar trades, Weekly Bar trades and Monthly Bar trades yet in the end of his video where he goes thru his entire watchlist for possible trades next week he only focuses on Daily Bar trades. Does he have separate videos for the Weekly and monthly watchlist trade reviews?

3. Do you know how he forms his watchlist?

4. In the interview video he makes some very bold claims:

a. That Average True Range/ Keltner channels indicate number of Standard Deviations from the mean, which is definitely not correct, that would be Bollinger Band channels.

b. That 92% of all price movement fails at the -3 ATR level, seems to be a very high statistic that I've never seen anywhere else...do know the source?

c. That 90% of all price movements reverse at specific RSI levels again a statistic I've not seen and no source is provided.

Thanks,
Ed S.


davesaint86
720 posts
msg #158631
Ignore davesaint86
modified
2/20/2022 8:17:49 PM

See the answers to the right of your questions.

@Davesaint86,

I watched both of those videos, Thanks for posting the links as that guy seems to be a meticulous trader and really follows his trading plan.
Trades every day but it very prudent about it...

As usual I have a few questions you might be able to answer:

1. Around minute 49 of his feb 12 market review he talks about liking the fact that Apple is in the Value Zone but goes to indicate its not ready to be traded yet.

a. Is his Value Zone just the area between the two 1 ATR channels? - His Udemy Deep Dip Buy course does not mentioned the Value Zone. Why? I found out the Deep Dip method is only one out of five of his trading strategies. With that said it does appear that the Value Zone is between the two 1 ATR channels. If I find out something different, I will let you know.

b. Since from watching his videos I know he likes trades near the -3 ATR channel, which seems to be quite a ways from his Value Zone, what purpose does the Value Zone serve? I don't know exactly. Maybe he considers it a pullback area.

2. In his review of recent trades he's taken he discusses Daily bar trades, Weekly Bar trades and Monthly Bar trades yet in the end of his video where he goes thru his entire watchlist for possible trades next week he only focuses on Daily Bar trades. Does he have separate videos for the Weekly and monthly watchlist trade reviews? I think the week before last he discussed a monthly and a weekly trade he was in. I think IWM was one trade.

3. Do you know how he forms his watchlist? Partially. I know for the Deep Dip Buys he back tests the 250 and 200 crosses using ETFReplay.

4. In the interview video he makes some very bold claims:

a. That Average True Range/ Keltner channels indicate number of Standard Deviations from the mean, which is definitely not correct, that would be Bollinger Band channels.

b. That 92% of all price movement fails at the -3 ATR level, seems to be a very high statistic that I've never seen anywhere else...do know the source? Sorry I don't. I know Ira Epstein states that 95% time that price stays withing the Bollinger Bands and if price falls outside most of the time price will move back in with five bars.

c. That 90% of all price movements reverse at specific RSI levels again a statistic I've not seen and no source is provided. Sorry, I don't know. He stated that one can ask questions during the videos. It was my understanding his videos were live five days a week but he has since moved to a once a week video due to being hired by a firm as a trader. I'll post this weeks vide and try to find the video where he has stated he was hired by a trading firm. I did ask him about is P&L. He said he is a conservative trader and averages 12 -18% per year.

Here is his email address - gregory@gossetttrading.com

I just found this on his YouTube channel which I haven't watched yet. It is a video on his 7 types of trade setups.
https://www.youtube.com/watch?v=nmP9Elib1N4

I just found this also. He has 15 videos and talks about V1 and V2 and many other things.

https://www.youtube.com/watch?v=nmP9Elib1N4

Also, he stated that one of his three mentors was Dr. Alexander Elder.

Here is the video where he said he was hired by a firm as a trader.

https://www.youtube.com/watch?v=naT_QGoH-h0
Thanks,
Ed S.

davesaint86
720 posts
msg #158632
Ignore davesaint86
2/20/2022 8:20:35 PM

2/19/22 - Gregg Gossett video

https://www.youtube.com/watch?v=VtPj_LwwXy8&t=3555s


davesaint86
720 posts
msg #158770
Ignore davesaint86
3/10/2022 9:01:45 AM

Deep Dip Buy Trading Rules

Deep Dip Buy Trading Rules
Position Sizing / Emergency Stop
Determine how many shares to purchase and how far below our entry price will we place our emergency stop
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
End of the Day Stop
End of the Day Stop Trigger = point where you entered the trade
Reason for Trade / Entry Signal = Close under close over the 200 / 250 / 300 SMA, bounce off the 200 / 250 / 300 SMA, intra-day rejection of the 200 / 250 / 300 SMA - End of the Day Stop = Close below 200 / 250 / 300 SMA
Reason for Trade / Entry Signal = Close Under / Over the 30 RSI - End of the Day Stop = Close back under the 30 RSI level
Entering a Deep Dip Buy / Position Size / Stops
1. Why are we entering the trade?
2. What is our maximum loss? (Example 1% of our total capital)
3. How many shares do we need to buy based upon our maximum allowed loss / value of 2-ATR
4. 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)
5. What is our End of the Day Stop (Close below the reason for entry)"
Trailing Stops / Rejection of 70 RSI to Take Profits
Once the price has increased by the value of 1.5 ATR, we go into trailing stop mode
Only when the price has moved the value of 1.5 ATR from the entry price you will sell ½ of your position when any subsequent price bars close below the previous days LOW.
You will then sell another ½ of the shares that you have remaining once the price closes above the 70 RSI and the subsequently closes back below and/or if the price rejects the 70 RSI on an intra-day basis.
You will sell all of the remaining shares after the 70 RSI rejection when any subsequent price bars close below the previous days LOW.
Alternatively if the price does not quite get to the 70 RSI you can exit the entire position if you get a close below the 5 EMA. (This rule is implemented if the RSI gets to at least a 65 RSI)
Trailing Stops / Rejection of the 50 RSI Reading and SMA 50 when using Under / Over 30 RSI
You will sell 1/2 of your position when any of the following 3 scenarios play out
You will be completely out of the trade if two of the three scenarios happen
1. You will sell 1/2 of your shares or the remaining shares if there is a close below the previous days low in any bars (if in 1.5 ATR TS mode)
2. Sell 1/2 of your shares or remaining shares if price rejects the 50 RSI level
3. You will then sell 1/2 of your shares or the remaining shares if the price rejects the 50 SMA level
Note: After entering a under back over 30 RSI trade and none of the previous 3 rules have triggered, then you would exit 1/2 of the position with the rejection of the 70 RSI level and then exit the remainder of the position with a close below the previous days low
Note: If 2 out of the 3 scenarios do not happen but the price goes up to at least the 65 RSI level or above but does ot quite reach the 70 RSI level, you can exit the full position with a close under the 5 EMA.
Note: If you reach the 1.5 ATR level and none of the above mentioned scenarios happen, then if price gets back to your entry level, you will exit the trade at breakeven on the remaining shares.
Intra-Day .45 ATR Profit Targets
Sell 10% of your current position whenever price moves the distance of .45-ATR from the previous day's close
Set three .45 ATR profit targets for the next day based on today's closing price. Do this daily until the trade is closed.
Example: 1st Profit Target = Today's close = $304.49 + .45-ATR = $2.88 + $304.37. 2nd PT = $307.37 = $2.88 = $310.25. 3rd PT = $310.25 + $.288 = $313.17
Place a limit order before the open of each new trading day for the 3 profit targets
If all three PT are hit, 70% of our position will be remaining. Rinse and repeat until all shares are sold.
Note: PT are offensive and TS are defensive
Importance of Confluence
Prioritize signals to take using a confluence of signals
Example - An under and back over the 30 RSI level at the same time a close under and then back over the 200 SMA level
The -3rd Keltner Channel used with 200/250/300 SMA and under and back over the 30 RSI level offers a great risk-reward setup
At the + 3rd Keltner Channel there is a 92% chance that price will go down
Do not take a 200/250/300 SMA trade if price is over the +2 Keltner Channel - at and above are restricted levels and one should not initiate new trades


davesaint86
720 posts
msg #158771
Ignore davesaint86
3/10/2022 9:06:45 AM

Here is a Deep Dip Buy trade simulation.

https://www.tradingview.com/x/0WTA8SiU/

Cheese
1,374 posts
msg #158774
Ignore Cheese
3/10/2022 11:01:16 AM

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
==============================================

EXCELLENT. THANK YOU, dave!


Cheese
1,374 posts
msg #158781
Ignore Cheese
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.

Cheese
1,374 posts
msg #158784
Ignore Cheese
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.

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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