Who is on the other side of KM Trades?

[version77]

Originally posted by nitro


IMHO, the way to scale into a position is as the Phantom suggests.

See http://www.futuresmag.com/futuresclassroom/phantom/phantom.html

Phantom likes to use tight stops apparently and adds to his
position as the market tells him his position is correct at a
ration of 3:2:1. Would this be a good idea with equities as it
would be with futures? Do you use this strategy with success
nitro? Interesting read by the way, thanks for the link.

 

[rtharp]

This strategy is horrible if you add to positions.

I'm now flat and done for the day

After closing my opening orders the market was positive so I played the long side of those trades. I ignore the shorts so that the overall market trend will be in my direction

JNW ave execution 23.28

EAT ave ex 31.1

PGO ave ex 5.75

CMH average ex 14.78



sold EAT and PGO for losses

losing about .10 on EAT
and about .04 on PGO


but.........
sold JNW some at .38....some at .50 some at .68 than the rest at .58




and sold my CMH at 14.95 15.04 and than 14.89

so I made about .35 on one about .18 on the other.

CMH seemed to have a lot of resistance

 

[rtharp]

Originally posted by version77


Can I ask what scan you are using to find these stocks?
Your candiadates for tommorow look pretty good to me.

I use Market Screen .com

with filters for NYSE and multiple up days in a row /down days in a row


Corey in this office use TC2000 and has a few screen he gets

I found some free ones that aren't too bad on www.pcquote.com

under screeners than with that scroll box -- in the middle scroll down to

potential bullish reverals /LONG and potential bearish reversals /SHORT

Robert Tharp

 

[nitro]

Phantom likes to use tight stops apparently and adds to his
position as the market tells him his position is correct at a
ration of 3:2:1. Would this be a good idea with equities as it
would be with futures? Do you use this strategy with success
nitro? Interesting read by the way, thanks for the link.

version,

As Robert says, _HIS_ strategy is _ANTITREND_ (at least the short/intermediate trend.) Therefore, IMHO, and Roberts opinion as well, adding (pyramiding) into positions in _HIS_ strategy is a _BAD_ idea.

However, if you are trading a system that is trading with the trend, there is something to be said for Phantom's strategy of adding to the position _WHEN_IT_IS_GOING_YOUR_WAY_, and paring out of a position when it is going _AGAINST_ you.

I know of traders that think this is a horrible idea _EVEN_ in this case. They figure, if you are going to be in a position, why not load up from the beginning, and if wrong, remove it fast. Since we are trading, they argue, and we have such great commissions, just get back in if it looks like you were originally correct. This is not what the Phantom suggests of course - that's what makes a market...

In regards to futures vs equities of Phantom's "money management" strategy of adding to positions, I see no reason why it should matter. Yes, I do add to positions when I am _Investing_, and I do use a 3:2:1 type of strategy.

_HOWEVER_ I do _NOT_ _TRADE_ this way!


nitro

 

[rtharp]

Adding to a position today would have killed you.

I'll post my trades for a few days to give everyone a taste to one of my systems


The list for tomorrow

SHort side


Market MUST be negative to play short
and they MUST go below closing price

peel off positions as they work in your favor and do not add!!!
25% retracement of daily bars run is total profit target

AOL
CXR
DAB
ETM
GCI
JHZ
NVS * this was on yesterday's list. It moved a point more extreme which means the new price is a point away and the trade becomes even more juicy

NYT
PDX
SCM



Long list not as many

BLX
COO
SEI


For the long list market MUST be positive and they must be above closing price.
Position sizing rules still apply to these as the shorts.

Robert Tharp

 

[nitro]

Robert,

Thanks for the new offerings. Is there any particular reason why this system is only traded within the first hour of the day and not again?

Do you live in Arizona and do you like to golf?

nitro

 

[version77]

Originally posted by rtharp



I use Market Screen .com

with filters for NYSE and multiple up days in a row /down days in a row

Corey in this office use TC2000 and has a few screen he gets

I found some free ones that aren't too bad on www.pcquote.com

Thanks for the links Rtharp. The screener you are using looks
like a good deal for only $49. I used to use TC2000 a few years
ago. Checked out the freebies today at PCQuote. The one you
are using looks a lot better than the freebies.

 

[version77]

Originally posted by nitro

In regards to futures vs equities of Phantom's "money management" strategy of adding to positions, I see no reason why it should matter. Yes, I do add to positions when I am _Investing_, and I do use a 3:2:1 type of strategy.

_HOWEVER_ I do _NOT_ _TRADE_ this way!

Thanks for the informative post nitro. Even William O'Neil will
let you add to postions as your stock goes up, so it must be
okay! I wouldn't (and haven't) ever done this daytrading.

 

[version77]

Originally posted by rtharp

I'm now flat and done for the day

After closing my opening orders the market was positive so I played the long side of those trades. I ignore the shorts so that the overall market trend will be in my direction

Gee whiz rtharp, what do you do with the rest of the day after
spending so little time trading the market?

How do you determine your entry positon sizing? Are you
splitting your capital evenly with your positions?

 

[version77]

Originally posted by rtharp

I'll post my trades for a few days to give everyone a taste to one of my systems
Robert Tharp

Awesome. Can't wait to see what Tuesday brings...