I trade longer term mechanical trading systems exclusively on the ASX. I rarely look at daily charts and the systems are built using weekly timeframes.
The information in this site is based on actual trades in real portfolios. I don't trade using margin or any sort of leverage. I mainly use Amibroker for system testing and trade monitoring.
I am not selling anything. This is just a journal to record where I have been and, just maybe, where I am going.
Saturday, February 11, 2006
DOM again
The DOM trade below uses an ATR trailing exit. I have been working on a system with an MA exit, as well as an rarely triggered RSI overbought exit, and a 200% gain exit. It would have worked well on DOM, and who would complain about a 200% gain?
2 comments:
Anonymous
said...
Hi Steve, RE: the 200% profit exit, would it be logical to adopt a sliding scale depending on purchase price. A $2 share may reach and exceed 200% gain comparatively easier than a $20 share. You may end up kicking yourself if the $2 share became a $10 share. I didn't think you were a supporter, or potential supporter, of profit exits. Regards Peter H
Peter The sliding scale looks like something worthy of investigation. The % profit exit could be a function of the initial purchase price.
For me profit exits are something to use sparingly. I guess that if I take a 200% profit out of a stock, a fairly rare occurence, I should be pretty happy. The system tested better with the 200% profit exit then without it.
2 comments:
Hi Steve,
RE: the 200% profit exit, would it be logical to adopt a sliding scale depending on purchase price. A $2 share may reach and exceed 200% gain comparatively easier than a $20 share. You may end up kicking yourself if the $2 share became a $10 share. I didn't think you were a supporter, or potential supporter, of profit exits.
Regards
Peter H
Peter
The sliding scale looks like something worthy of investigation. The % profit exit could be a function of the initial purchase price.
For me profit exits are something to use sparingly. I guess that if I take a 200% profit out of a stock, a fairly rare occurence, I should be pretty happy. The system tested better with the 200% profit exit then without it.
Stevo
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