The system has once again excelled in this volatile environment. I mentioned last night that I expected volatility to pick back up, and did it ever. The additional QID position was purchased on the open, as indicated in last night’s post. Today’s large move has put RSI(2) on QID over 80, which means both QID positions will be closed on the open. SDS is just shy of the exit signal with RSI(2) at 78.29, so it will be held until the exit criteria is met. In my personal account, I took the SDS trade, and I will be selling the position tomorrow.
All three open positions are highlighted in yellow and marked-to-market as of Monday’s close. It is exciting to see the system pull itself out of a drawdown in just 3 trades. Granted, SDS could reverse and end up getting stopped out.
The most important development is that the Big Bamboo has weathered its first losing streak! I encourage anyone who is following this system, live, on paper, or just for fun, to examine how the drawdown and losing streak affected your psychology. Remember that the psychology of the person trading the system can have a huge influence on whether the system generates profits, or losses. If any of these last 3 trades would have been ignored, due to a loss of faith in the system, the Big Bamboo would still be in a drawdown.
Congratulations to anyone who has stuck with the system so far! A 25% return over the worst 2 month market period since the Great Depression is something to be proud of. With a little luck, SDS will be closed out even higher than where it closed today, and the system will be at a new year-to-date high.
One final note. The entry and exit signals for this system are generated 100%Â from technical analysis.
No New Entry Signals for Tuesday
Nice job, Shoodwedder.
Now go, refinance that mortage with these well-gotten gains.
________
Thanks Jake! These trades just needed your (cough, clears throat) um, blessing…
As for the re-fi, you gonna come to the closing?
100% TA. Love it.
CA, I figured you would!
That dig was for “The Mexican” and a few other characters who stop by now and then to denigrate technical analysts.
sweet man. The draw-downs on this look pretty damn good good so far for those returns. Something around 7% it looks like? Very solid Drawdown/Net Profit ratio.
bhh, I just calculated the drawdown from the recent losing streak, and it was exactly 7%. Without checking our previous tests, this is pretty much exactly in line with previous drawdowns, no?
I have a delivery of props here for a Mr. Shedder?
Seriously, well done Shed.
Yep, max drawdown in backtesting was 7.96%. Pretty f’ing cool.
BIG BAMBOO can suck my BIG BALLS.
^ hah!
“One final note. The entry and exit signals for this system are generated 100% from technical analysis.”
bullshit Shed.
Nice job Wood.
Seriously, well done Wood.
After going 0-23, hitting a grand slam today was entirely worthwhile.
Nice job, pal.
Go buy you a Collings.
If balls are required for trading, no wonder I’m not having any luck. Maybe I can use these neon-green tennis balls as a substitute.
Danny, absolutely, 100% technical analysis. Maybe you are kidding.
Fly, that losing streak has turned out to be only one trade longer than the longest in backtesting. Keep in mind, had the system been traded with an 8% stop, we would not even be talking about losing streaks.
DOODES it’s fake money, he said we wasnt trading BB in real life yet….
I was kidding Shed, I know it was all TA
Thanks Boca and Topper!
Boca, ovaries work just as well. Just ask Jake!
Boca, I hope you won’t find this too personal, but a good trader’s balls will have no hair, because hair doesn’t grow on steel.
think about it. it makes perfect sense.
Danny, I have been trading it. I’ve posted the actual fills. I have just not been using the exact same percent risk / stop losses the system is using, and I haven’t taken EVERY signal.
OUCH! Poor Jake. Now that was not nice, Mr. Shedder.
Danny, I suspected as much, at least as far as the traders here. FYI my ovaries are shiny brass. I aspire to attain gold ones.
oh. nm then.
and now I can congratulate you on the win!
I’ve been following along on the Big Bamboo without trading it, just watching. I have to admit that if I had traded it in real life, I would have had a crisis of confidence by Friday and not stuck with the system. Hah, good thing I don’t use system trading, I’m not good at following rules.
brass ovaries sound pretty good, brass is a high quality alloy.
Balls of big steel are probably the most desirable thing to have in many facets of adventure, be it with stocks, skateboard tricks, or introducing yourself to girls that are too hot.
But a nice brass ovary I think has potential, so don’t quit.
I have a tool I’m about to introduce to everyone that will practically assure them some money saved.
Thanks Danny.
G’nite all, have lots to do again tomorrow. Despite the impending approach of Armageddon, apparently some people still feel the need to shop online, go figure.
“I have a tool I’m about to introduce to everyone that will practically assure them some money saved.”
lol Danny. I’m sure you didn’t mean that the way it came out.
Does anyone know what the RSI2 settings are??
Hillary, could you be more specific?
This is one big fucking gay fest.
Fuck everyone on this thread, twice over with a cactus.
Hey Fly, might I suggest a warm turkey samich?
Oh no shed, I did. I like introducing my tool places.
What’s all this talk of tools?
Fucking queer blog this is.
Jeremy change the header, to the pink one we have stashed away.
Fly, quit horsin’ around. Go do some research or something.
I will do nothing of the sort, old chap.
I will turn your blog into a ghetto, mind you.
It’s ok to be gay, I have double the chance of getting a date on Friday night. Oh haha I just kill myself heh heh.
WB, notsosleepyBoca.
I’m so so sleepy. But, I’m putting it off. For what, I don’t know.
what the shit is going on here with all this “tool” talk?
Because you love our company and can’t tear yourself away?
If you find yourself taking a nap on your keyboard though, it’s a sign to call it a night.
Shed, why wasn’t the SDS trade not stop out at 92.09 on 11/28? According to Yahoo, the low on 11/28 was $88.05.
http://finance.yahoo.com/q/hp?s=SDS
pn, stop on SDS is at 86.60
The last 3 trades have been at 8% stop, with 2% at risk. I changed the stop and position sizing to deal with the large volatility. The 4% stop was too tight for the conditions.
pn, I know why you are confused. The stop listed on the spreadsheet is the initial stop calculated for position sizing purposes, BEFORE entry is made.
After the actual entry, the stop is adjusted to reflect 8% from entry price.
Gotcha, then the Big Bamboo does not suck the Fly’s extra vinegary balls (Southpark reference.)
Wood, my balls are here, and Schwetty.
And you can suck them.
I will come to the closing if I can clear the sched. We are trying to close some stuff around here as well, thank the non-stock related gods.
True story. [About work… Redacted, I’ll tell you in person]
You wanna talk schwetty ballz? The stock market is minimally stressful in comparison…
__
Good for you Jake. Glad to hear business is still getting done.
Hey Woodshedder –
How can I follow the system in detail … learn how it works. Thanks.
I noticed that both days you opened wth negative real risk you were stopped out. While still following your system and taking the trades, you should take mental notes and report back to me as to whether starting with negative equity is indicative of a strong squeeze that day and that maybe some longs should be thrown on in a discretionary acct
Good job. It is important to trader psychology to have positive expectations from a system, and anyone should certainly be gaining that by now.
Jake, try some Gold Bond for those Schwetty Ballz.
Green Acres, all the specifics are detailed on the blog here. Start with The Big Bamboo under the About menu, and then look at the Category *Big Bamboo, and that is where the rest of the post are housed.
Or, you could just ask whatever questions you have that are not answered elsewhere.