I should have updated the blog on Monday, as [[EFU]] stopped out just 46 cents from the low of the day. Instead, I spent the better part of the evening planning my revenge on the @#^& Pacific Exchange lowlife who filled my purchase of EFU at $163.92.Â
Had EFU not stopped out, the position would be getting closed out tomorrow, as the RSI(2) closed today well above 80. The gain would have been approximately $2,000. If anyone out there took this trade and is still in it, be careful with any market order to sell on the open. My advice would be to try a limit order, or to wait a minute or two after the open, while closely watching the bid/ask spread.
The bright side of this trade was that I stayed in it, even after my egregiously bad fill. If I can sell the position tomorrow at a price close to this evening’s close, I will still pocket 14 points. Not bad for a trade that went against me by 15 points on the first day.
I will make the final decision over the weekend, but I am leaning heavily towards making all future trades of the Big Bamboo with an 8% stop and 2% risk. The 4% stop is too tight, even when on the right side of the trade from the get-go.
Special Note: Try out the new Disqus comments format. I plan to put up a poll in the near future to see if you all like it better, or not.
ah, you bastard! you went against the system, lol
B-rad, sort of…I just used a larger stop. I think, as a proof of concept, what we have here is very very good. The stop is really the only thing keeping me from trading this by the rules, within my covestor account (where it will be audited). I really want to get an adaptive stop figured out.
Hey, how did you do this? i want disqus too, just because a lot of people have been asking for it.
BTW, its me gio.
Gio, I don’t know what happened. I had disqus, but now I don’t anymore.
You should test Big Bamboo using Bearish Range Pivot stops. I just learned about them today:
http://1.bp.blogspot.com/_doOtgXlX_xg/SSTKyJr6G…
http://ripetrade.blogspot.com/2008/10/pivits-ho…
Alex, thanks! I'll take a look at them.
I like his blog. Some good testing and interesting strategies on there.