Double account challenge - $116,500 to $233,000

[fan27]

Starting a new journal with a goal in mind...doubling my account. My previous journal is here Adventures in Automation.

I am continuing to run my mean reversion MES algos which have been running since last year. The new element is momentum based equity trading (style similar to https://qullamaggie.com/) which I began late last year. Initial equity trading results were great followed by giving back all the gains and then some. See below.

Once my account has doubled, I will close this journal and start another one.

In addition to posting results weekly, I will post anything that might be of value to those trading in a similar style.

Happy trading!

 

[qlai]

Nice. Good luck. So this will still be combination of automated and discretionary? What drawdown will force you to shut down trading (of initial equity)?

 

[fan27]

Nice. Good luck. So this will still be combination of automated and discretionary? What drawdown will force you to shut down trading (of initial equity)?

Correct (discretionary and algos). A 40% drawdown is possible with the algos, though that would likely require a 2000 or 2008 style bear market. However, the bounce back from the drawdown in those cases was massive. I am willing to take heat on this account as most of my money is tied up in retirement accounts.

 

[fan27]

For trading equities, my evolving rules are as follows.

1. Stock has made a big move and begins to consolidate, pulling back to 20 or 50 SMA.
2. Enter on break out of consolidation.
3. Sell half position after a 15 to 20 % move.
4. Trail the second half of the position.
5. Stop goes below the daily low or most recent pivot low.
6. Stop is moved up to BE as stock moves in your favor.

Here are two trades I am currently in with no partial exits yet. Stop is at BE.

This trade stopped out the following day.

One area of research is to scale into a position while in the consolidation phase. For example, in the STX trade, a partial entry could have been made when support was found at 100 prior to recent upswing.

 

[qlai]

Long only?

 

[fan27]

Long only?

For now, yes.

 

[emulimu]

For now, yes.

Always wondered. If you go long 100 shares and at stop, you sell 200 shares? Switch long to short.

 

[fan27]

Always wondered. If you go long 100 shares and at stop, you sell 200 shares? Switch long to short.

Very likely to be a losing strategy.

 

[deaddog]

For trading equities, my evolving rules are as follows.

1. Stock has made a big move and begins to consolidate, pulling back to 20 or 50 SMA.
2. Enter on break out of consolidation.
3. Sell half position after a 15 to 20 % move.
4. Trail the second half of the position.
5. Stop goes below the daily low or most recent pivot low.
6. Stop is moved up to BE as stock moves in your favor.

#3 How do you know whether to take the 1/2 off at 15% or 20%? Do you have a sell stop in the market?

Look left on the chart. The big spike in Nov showed lots of supply in that area. (Seagate)

 

[NoahA]

Very likely to be a losing strategy.

Out of curiosity, if it would be a losing strategy to short, then does it not follow that its a losing strategy to initially exit the long?

I know that sometimes when you have no idea what is happening, or the market isn't clear, its best to be flat. But disregarding emotions, does it not make sense that if one is not prepared to short, exiting a long position is just as likely to be a mistake as not shorting?