Spydertrader's Jack Hershey Equities Journal II

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Quote from Clym:

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Clym,

Allow me to propose a modifiction to your channeling. Once your daily appears to signal an entry (or exit) draw your channels based on a 30 min chart instead. You will often get a max top channel as well as an intermediate one. None the less I suspect you will find that your higher profit scenerios will infact play out as close to suggested exits on the 30 instead of the Daily.

Ross
 
Quote from Ross:

Clym,

Allow me to propose a modifiction to your channeling. Once your daily appears to signal an entry (or exit) draw your channels based on a 30 min chart instead. You will often get a max top channel as well as an intermediate one. None the less I suspect you will find that your higher profit scenerios will infact play out as close to suggested exits on the 30 instead of the Daily.

Ross
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Ross/Clym,

I've never had much success with channels as the ones I draw don't match the ones drawn by others. Is there a way to do this that has objective methods?

Doug
 
Clym,

Thanks for your post. I'll have to try to absorb it. I've been papertrading this system (more or less) for some time now and I'll have to try to review my trades in a similar fashion to what you are doing. I've got 78 trades completed on paper.

I can offer this right now, however. The channels seemed to help me as well. I review my DU candidates for position related to the channels that I can draw in. If the price appears "overbought" - near the upper channel line (UCL) I usually just monitor the stock and do not trade it, even if a signal occurs. This seems to have improved my success rate (its still too early to tell), but it reduces the number of trades.

If someone has difficulty drawing the channels try using a regression line tool set to 2 standard errors (if you can), start at the bar of the last obvious peak prior to the most recent one and stop at the bar of the most recent observable peak. If you extend the resulting lines into the future you'll usually have decent channel bounding the cycle and its a pretty objective way of doing it. Just don't force it. If the channel pattern isn't evident, then don't start believing one that you can't make sense out of. Sometimes you just can't make a good one. BTW - The method works with the last two troughs as well.

I'm about to start using the Zacks simulator as well. Up to now I've been using Excel, but the Zack's simulator should more closely simulate real life, because I can't back enter something that I "would've done".

-ace
 
Trailing Stop on VPHM hit @ 19.13.....big fat loss on that one

For those who short, there was a signal in BTUI this morning, that I didn't take because I am not shorting these signals right now....but if I was, I would have shorted this one at 13 if I could have gotten filled....
 
Quote from mrpace:

Trailing Stop on VPHM hit @ 19.13.....big fat loss on that one

For those who short, there was a signal in BTUI this morning, that I didn't take because I am not shorting these signals right now....but if I was, I would have shorted this one at 13 if I could have gotten filled....
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not to put the knife in the plague (letterally translated from an Italian saying :D ), but that's nearly a 4% stop from your entry, right?
Why sucha wide stop? and why do you call it a trailing stop?
I just want to understand other people's strategy to better mine.
thanks IA
 
Hi folks,

Just started following this thread. I'm wondering if someone can do me the favor of posting their Final Universe as it stands right now. It would provide me with a starting point to add to or take from as I scan. I'm new to trading using scans.

Thanks.
 
Quote from mark1:

not to put the knife in the plague (letterally translated from an Italian saying :D ), but that's nearly a 4% stop from your entry, right?
Why sucha wide stop? and why do you call it a trailing stop?
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The method calls for using a 5% trailing stop if all rules are met to carry the trade past the initial day....

So, I entered the trade @ 19.90 last week, it met all the criteria for carrying the trade overnight and beyond, so I set a 5% trailing stop......which was hit today.....

Perhaps I am doing something wrong here, but I was under the impression that the general exit rules are as follows:

If a stock surpasses FRV on day of entry, you hold the stock for at least 4 more days, unless:

a) Stock price increses 10%
b) Volume exceeds Peak Volume, in which case you look to exit the next morning
c) 5% trailing stop is hit
d) time - exit after four days if none of the other above criteria are met

Rules are spelled out here:

http://www.elitetrader.com/vb/showthread.php?s=&threadid=38777&perpage=6&pagenumber=343
 
thanks for your clarification Mrpace.

I see you r using the original 5% stop.
I've been using the Ross's 2% stop rule .

But I use it as a "regular" stop on the entry day (no trailing).

Then I use a trailing stop on the following days, based on volatility %, calculated on the average of volatility showed by the stock during the previous cycles.

gee hope it's clear enough :p

thanks again for your input!
 
Quote from mark1:

thanks for your clarification Mrpace.

I see you r using the original 5% stop.
I've been using the Ross's 2% stop rule .

But I use it as a "regular" stop on the entry day (no trailing).
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No, that's not what I said....I think....

I bought VPHM on Friday.....thus, I switched to the 5% trailing stop after the first day....which means the 5% trailing stop went into effect 9:30am yesterday (Monday) morning....the high for Monday only got to $20.22, thus a 5% trail would be triggered at $19.20....for some reason, Ameritrade had my stop at $19.13... maybe my chart is inaccurate or maybe Ameritrade screwed up the stop.

In any event, I am using all original rules, and I believe I did everything "right" in this case. If I didn't please correct me....

Bottom line, VPHM never really went up much after Friday, which is why my 5% trailing stop resulted in a larger than usual loss....
 
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