The new entry signal is highlighted on the sheet in a pleasing blue hue. Recorded is Friday’s close. The sheet uses Friday’s close to calculate a 4% stop, which is necessary to calculate the position size. At the top of the sheet, our 1% risk level per trade has climbed to $614.00, which allows the system to purchase 297 shares of [[DUG]] . As the purchase will be made on the open, if DUG gaps open, the system will be taking on more risk than calculated; if DUG gaps down, it will be taking on less risk than calculated.
As DUG could easily close Monday with an RSI2 of greater than 80, if this trade works, it will likely only last 1-2 days.
The system also generated an entry into [[REW]] . However, I will override the system and not buy REW due to the RSI2 being greater than 80 on Friday’s close. I had not considered this possibility, which means the trade-by-trades used for backtesting need to be examined to make sure any entries generated with the exit criteria already met get discarded.
The other issue with REW is liquidity. While it does trade better than SCC, there still may be some severe slippage. The system rejects any diETFs without a 10 day average volume of over 100,000. I would say that REW has barely met the requirements for volume.
Good luck on Monday!
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btw, I did your SCC trade … made 35 pts & closed the trade.
nice call !
thank you 🙂
Nice work! I believe the Big Bamboo would have stayed in the trade with a 6% stop.
My stop executed at 50.37.
Susan, I’m sure mine triggered too.
This is where this system can get interesting, as far as a streak of losers is concerned.
Do we try to game the tendency to lose and win in streaks?
I’ll try and do a post about my thoughts this evening.
What if you removed the stops? Have you backtested without any stops?