Spydertrader's Jack Hershey Equities Journal

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Quote from Capablanca:

I wish to clarify how you apply your trailing stop. If you are using a 2% trailing stop shouldn't it have been hit today for MCRI? Or are you using a 2% initial stop loss for this trade but a 5% trailing stop? Could you provide the calculation or stop level? Thank you once again.
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I apologize for not being more clear. I use 2% as an initial stop only on the first day in order to limit my potential loss from a Failed Break Out (FBO). After the first day, I use the same 5% stop as always in order to give plenty of 'wiggle room' for our positions. Again, I apologize for the confusion.

- Spydertrader
 
Quote from Bob111:

this is spy first words at beginning of journal. i did not follow all 200+ pages, but i was watching last few very close.
as been pointed by many readers spy is playing with sizes,"money management " and many other things, which is not been mentioned in description of method at beginning of journal. if he achieve extraordinary results more than year ago, what is the reason for all that stuff? if you change your stop from original 4-5% to 2% -do you really believe it will help you achieve a better results? i don't think so. 2% just too tight. and if you trade long enough-you should know it.
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Again, I should have been more clear when describing the change in initial stop loss levels. I apologize for the confusion that has resulted.

Due to the collaborative efforts of individual traders posting to this Journal over the last 9 months, the system we trade today differs greatly from the one I described at the beginning of the Journal. These many contributions have had the effect of improving my overall performance over which I experienced before I began posting last September. Although the fundamental principles behind The Jack Hershey Equities Method remain the same, the current iteration provides an increased number of possible trade signals than the one I described some 200 pages ago. However, this increase in signals has come at a price, and that price is a slight increase in risk in the form of increased number of False Break Outs (FBO). In order to mitigate that risk, I have experimented with a variety of methods involving varying stop size, position size, and varying exit criteria.

By using a 2% stop on the first day ONLY, I hope to reduce the magnitude of those losses resulting from the increase in number of FBO occurrence on day one.

Again, I apologize for the lack of clarity contained in my previous post, and I hope the above paragraphs answer your question.

- Spydertrader
 
2005-06-13, Monday - Lists

Hershey Wealth-Lab Chartscript Culling Methodology
Hershey Chartscript Scans / Qcharts Culling / Stocktables.com Sort

Hot List

FORD MCRI XXIA

Dry Up Stocks

EXM EZPW JUPM MFLX TASR USG

Hot List Stocks Scores

FORD - 5
MCRI - 0
XXIA - 0

Dry Up Stocks Scores

EXM - 7
EZPW - 7
JUPM - 0
MFLX - 0
TASR - 0
USG - 5

Keep an Eye on These Stocks

EZPW (Attached)

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=766828>
 

Attachments

2005-06-13 - Current Final Universe

BCSI DCAI ELOS EXM EZPW FORD GDP HANS IMAX JUPM MCRI MFLX PARL SIGM SNDA TASR TRGL UBET USG VDSI XXIA

The following equities have failed to maintain their rank. I plan to remove them from the above list at the end of the month.

GDP IMAX SIGM SNDA

- Spydertrader
 
2005-06-13, Monday - Update

This morning I monitored one list of stocks (6 total equities): Those equities from our daily Hot List and from our Final Universe List finding themselves "In Dry Up."

Dry Up Stocks

EXM EZPW JUPM MFLX TASR USG

Our system generated two possible trade signals from the list of 6 Dry Up Stocks when actual volume exceeded calculated "Low Band" Dry Up Volume prior to 11:30 AM.

Dry Up Stocks Triggering Signal

EXM TASR

Dry Up Stocks NOT Triggering Signal

EZPW JUPM MFLX USG

EXM did not show price improvement at time of signal generation (10:56 AM). As a result, we eliminate EXM from further consideration.

TASR did show price improvement at time of signal generation (9:33 AM). In addition, both MACD and The Stochastic Indicator fell within desired parameters. However, Price for TASR experienced a 6% gap up at the open. My rules prevent me from entering into a position when a stock gaps up by more than 5%. As a result, I took no action with respect to TASR. The particulars for TASR at time of signal generation are as follows:

TASR

Time: 9:33 AM
Price: $11.54
MACD: +.0977
Stoch: 92.222
Score: 0
FRV: 7,470,797 shares

- Spydertrader
 
2005-06-10, Monday - MFLX

I received several questions via email and Elitetrader PM this afternoon regarding MFLX and why I did not indicate the generation of a trade signal. According to my data, actual volume for MFLX exceeded calculated Dry Up Volume at 11:31 AM - after our normal cutoff. However, many individuals indicated they received a signal for MFLX at 11:27 AM - before our normal cutoff. After reviewing time and sales from my back-up datasource, it appears as our system did actually trigger a trade signal today at 11:27 AM for MFLX. Although I took no action with respect to MFLX, congrats to those individuals that did profit from this signal. The particulars for MFLX are as follows:

MFLX

Time: 11:27 AM
Price: $16.78
MACD: +.0815
Stoch: 88.0145
Score: 0

- Spydertrader
 
2005-06-13, Monday - Lists

Hershey Wealth-Lab Chartscript Culling Methodology
Hershey Chartscript Scans / Qcharts Culling / Stocktables.com Sort

Hot List

FORD MCRI XXIA

Dry Up Stocks

EZPW JUPM MCRI USG

Hot List Stocks Scores

FORD - 0
MCRI - 0
XXIA - 7

Dry Up Stocks Scores

EZPW - 2
JUPM - 7
MCRI - 0
USG - 5

Keep an Eye on These Stocks

FORD (Attached)

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=768185>
 

Attachments

2005-06-14, Tuesday - Update

This morning I monitored one list of stocks (4 total equities): Those equities from our daily Hot List and from our Final Universe List finding themselves "In Dry Up."

Dry Up Stocks

EZPW JUPM MCRI USG

Our system generated one possible trade signals from the list of 4 Dry Up Stocks when actual volume exceeded calculated "Low Band" Dry Up Volume prior to 11:30 AM.

Dry Up Stocks Triggering Signal

MCRI

Dry Up Stocks NOT Triggering Signal

EZPW JUPM USG

MCRI did show price improvement at time of signal generation (10:55 AM). In addition, MACD Histogram showed a positive return. However, The Stochastic Indicator failed to achieve desired levels. As a result, we eliminate MCRI from further consideration and take no action with respect to trading this equity. The particulars for MCRI at time of signal generation are as follows:

MCRI

Time: 10:55 AM
Price: $21.74
MACD: +.0697
Stoch: 55.8556
Score: 0
FRV: 303,820 shares

- Spydertrader
 
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