Long/Short Stock Swing Trading Journal
- Thread starter mc107
- Start date
Quote from Boib:
Only on the first day or any time it drops 3% from the entry or any day that it drops 3% from the prior day?
If you add to a position do you sell the whole position after 11 days or is the added portion treated like a new position? I hope that makes sense
Thanks for the questions to help me explain the procedure.
Let us first discuss the situation when the stock is picked by the system again the following day. If it drops 3%+ from your previous entry point, you add it as a NEW position and sell it after 11 days. If it drops less than 1% from your previous day's entry point, you do not add a position. If it ups 1%+, you add a new position.
If the stock is picked on the 3rd day or after, you will enter a new position no matter how much change it has from your previous entry points. Again, treat this position as a new one and sell it after 11 days. The 3% rule is arbitrary; it intends to avoid hold one stock with 10%+ of your capital. The overall performance is not sensitive to the rule when you have 1000+ trades per year.
Mostly not short/long at the same time, longs are biased. Months of Jan, May, Aug, Oct-Dec are mainly for long, some other months are for shorts. All are dependent on market condition (using my own indicator).
Lowtrades.com, RML and others offer $3/per trade. Izone for $5/trade. You can ask lower commission fee if you are large-volume trader.
For this system, it does need super fast execution. A few minutes delay in execution will not lead too much difference in the results after 1000+ trades per year and 11 days holding period.