iBankCoin
Joined Nov 11, 2007
1,458 Blog Posts

New ETF System Has Killer First Week

Up 7.65% for the week, with only 4% of equity at risk (2% if stops were adjusted for gaps), and an average cash balance of around 43% of starting equity.

This morning, [[DUG]] was sold at the open. As discussed last night, [[SDS]] was left open since the position closed just shy of its required exit signal.

I cautioned last night that it would be easy to close out SDS early to take fat profits, but noted it would be a modification to the system. Sticking to the rules was of course the right decision to make, as SDS initially dipped hard, but ended up closing with a gain of 2.64%.

SDS closed today with an RSI(2) of 84.68, and will therefore be closed Monday on the open.

The spreadsheet above has SDS marked to market as of Friday’s close (that is why it is highlighted in yellow). The sheet will be adjusted Monday with the actual exit price.

Ignore the Equity amount (also in yellow) as it cannot be updated correctly while there are open trades. The total equity is now $53,825.13 In four trades, the system has generated a return on investment of 28.82%, although these figures will obviously change when the actual price for SDS is booked on Monday’s open.

I have lots of cool statistics and equity curves, for a variety of levels of risk and position sizing, for this system. I will post them tonight or this weekend. If you are interested in system trading, you will not want to miss what I’m going to show you.

No new entry signals for Monday.

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9 comments

  1. Pinball Trader

    Thanks for the update and congrats.

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  2. buylo

    bring it on woodrow!

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  3. Woodshedder

    Too bad I’m only paper trading it! All things in time, I guess. I’ll give everyone fair warning before I start to actually trade it, because you can rest assured that it will hit a huge losing streak as soon as I start trading it!

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  4. F-ing Loser

    Woodshedder,

    Well done, outstanding first week!

    LOL, “it will hit a huge losing streak as soon as I start trading it!” Sad but that does seem to be the way of the market.

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  5. Ichabod

    Good deal Woodshedder, thanks for the work and for keeping us updated! I’m looking forward to all of the stats!

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  6. howdy

    Woodshedder, very impressive, ive been tracking your calls and use stockfetcher as well. Do you have a twitter account or a way to send alerts on your system, or do you expect to post it pre open every time you get a signal? I’m in.

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  7. Woodshedder

    Howdy, I will be posting the signals the night before they are to be acted upon.

    Keep in mind this system is in its infancy and has not been thorougly vetted, so to speak. Money management is as much a part of this system as the entry and exit, so keep that in mind. Other than those things, I just have to tell you to be careful, and always use stops.

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  8. howdy

    im holding sds here, and bought it at the same level, but not sure i want to let it go on a technical level because the markets look set for some real capitulation. This week will struggle to find a support level.

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  9. Woodshedder

    Howdy, I would not be surprised at all by another 10% down day on Monday.

    However, I am trying hard as I can to ONLY trade my strategy signals. Because of having no signals, I’m in cash, except for a very small position in SQNM. (Every once in a while I’ll take a discretionary trade, just to remind myself why I suck at it.)

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