Position trading stocks

[Chartsy]

Hey guys, long time member and lurker here.

I have some funds , but want a proper forward test of my method I've slowly been developing over the years . Essentially I am looking for strong trending stocks on their weekly charts, waiting for a base breakout and buying a very small pullback , and using a mechanical Ema strategy for the exit .

The aim is to beat bank interest . Here goes . I am going to risk 1% per trade, with a maximum of 5 trades open at once .

 

[Chartsy]

Here goes :
Trade 1 : buy limit TTWO at 61, stop 57.5

 

[Chartsy]

Trade 2: buy limit BFAM 73, stop loss 70.50

 

[Chartsy]

Trade 3 : buy limit CII 74.40, stop loss 74.05

 

[Chartsy]

Trade 4: buy limit FBNK 25.10, stop loss 23.85

 

[Chartsy]

And trade 5:
Buy MASI at opening price on Monday , stop loss 92.65

 

[Chartsy]

That's this weeks trades . Each with 1% risk. Let's see if we can get some runners here

 

[gotu]

Nice, how do you pick your stocks? Do you use indicators to filter?

Cheers

 

[Chartsy]

Nice, how do you pick your stocks? Do you use indicators to filter?

Cheers

Hey, I use two very short term EMAs for entry and exit , other than that it's just a matter of flicking through a couple thousand charts and finding those few which look good !

 

[gotu]

Nice, the charts look like they are in pretty strong up trends and buying certainly seems like the best strategy.

Do you take into account the companies fundamentals at all?

I was asking how you pick your stocks because I have been thinking for some time of using indicators to filter out stocks that are showing the right setups, for instance in your case strong uptrend and range breakout. I haven't had the time to study this but I think I will eventually. The idea of manually going through thousands of charts to find which "look good" sounds very time consuming.

In any case it seems like you are choosing some good candidates, I will be following this thread

Cheers

 

[Chartsy]

Nice, the charts look like they are in pretty strong up trends and buying certainly seems like the best strategy.

Do you take into account the companies fundamentals at all?

I was asking how you pick your stocks because I have been thinking for some time of using indicators to filter out stocks that are showing the right setups, for instance in your case strong uptrend and range breakout. I haven't had the time to study this but I think I will eventually. The idea of manually going through thousands of charts to find which "look good" sounds very time consuming.

In any case it seems like you are choosing some good candidates, I will be following this thread

Cheers

Hey in future I am going to try and implement fundamentals. It just add an extra layer of confluence to trades to buy into good companies. Yeh that's correct, a range breakout in a strong uptrend. Might I add that I only look for very 'tight' ranges/flags and preferably very flat (a strong bid in the market in other words).

For the time being though, i'm getting a hang of the timing and technical side of stock trades. One other thing I look for is a weekly close above a range (not merely placing a buy stop a few ticks above the high). Sure, this means I get in higher but protects me from fakeouts to a certain degree.

As for screening, when I actually get my finger out and get some good software I will play around with it unti l find stocks that hit the spot. Mechanically speaking, probably a high ADX reading with a recent drop in ATR might do the trick, along with fundamental screening too.

 

[Chartsy]

4/5 of the stocks so far have taken off without filling my limit order. I will wait to see how the week closes out. I got 'filled' on MASI at today's open price, which was 98.68, but let's assume slight slippage so a fill of 98.72.

The strategy sometimes involves a trailing entry, but it just depends on how far the breakout travels, too far and i'll pull the limit order out .

 

[Chartsy]

cancelling limit orders on all the trades not filled. So only trade currently in action is long MASI, currently up just under 1R

 

[Chartsy]

got fisted on MASI, -1%

 

[Chartsy]

New orders for this week (will post picture if trade gets triggered):
Buy limit NFLX 153.80, stop 147.
Buy limit SNPS 74.28, stop 72

 

[Chartsy]

Filled on SNPS: strong uptrend , flat base breakout

 

[HobbyTrader]

To me TTWO looks like it has tanked. I have never seen a moving average crossover strategy win except in a strong bullish market.

 

[Chartsy]

To me TTWO looks like it has tanked. I have never seen a moving average crossover strategy win except in a strong bullish market.

What is your definition of tanked? See the picture below .
This is not a moving average crossover strategy, don't know where you got that idea from . But yeh, it is a trend following approach , so market conditions do have large effect .

That's the thing with stocks though , thousands of markets to trade , some aren't totally tied to the overall market and can trend hard even if the indexes are flat .

 

[Chartsy]

Trailing entry on NFLX higher :buy limit 155.07, stop 148.67

 

[Chartsy]

New orders for next week:
Buy AEP at market open, stop 66.60
Buy XEL market open, stop 44.60
CHKP buy limit 106, stop 104
NFLX limit order still in place.

two charts attached for AEP and XEL: same thing again, base breakouts in strong uptrend.