Today, [[DUG]] threw the Big Bamboo a curve ball. It took a swing, and missed.
I bought some at the open and was filled at $53.84, which shows .33 slippage (.6%)Â from the listed open. I was stopped out, as was the system. I used a 6% stop (rather than the 4% being tracked)Â to give it some room. The volatility makes for challenging risk management. There are starting to be questions in the comments section about alternative stop strategies. I’ll try to get to that soon, in an upcoming post.
Note the yellow highlighted cell. Had a stop been set based on Friday’s close, the real risk of the trade would be almost double the expected risk due to the gap up.Â I cannot emphasize enough the importance of stops that automatically offset from a market order entry.Â
The loss on this trade was slightly more than the expected 1%.
No New Entry Signals for Tuesday