I’m not usually a braggart, but you have to admit, this screen returns some very nice short setups. I’ve been fiddling around with a system for trading these setups and am seeing some promising results. Granted, trading these setups over the last six months would have your account in a drawdown.
I’m getting prepared for things to change again, and my version of change sees these types of setups start working again.
I like a tight stop on these, and a quick exit, preferably holding them 2-3 days.
(No, it doesn’t use RSI(2))
Commercial Vehicle Group, Inc. [[CVGI]]
Central European Media Enterprises Ltd. [[CETV]]
Broadcom Corporation [[BRCM]]
Pegasystems Inc. [[PEGA]]
[[FAS]]
Clearwire Corporation [[CLWR]]
Interpublic Group of Companies, Inc. [[IPG]]
[[CAR]]
Hi Wood: What type of stops would you recommend, percentage-based? And are they in any kind of ranked order, or random?
Mike, they are ranked, but I have not thoroughly tested the ranking method.
I always favor percentage stops, but that is my bias. I have not yet tried anything except for percentage stops, but I want to look at ATR, as well as looking at having a stop placed x% above the MA50. On my baseline stuff, I have been using a 5% stop. Shorts are always more scary for me, and so my thinking is that tight stop gets me out of the trade more quickly if it doesn’t go in my favor.
Sounds good – I’m giving these a try with stops based on a combination of percentage and recent highs.
Does anyone know where I can git me some pecan pie? I love to wash it down with Peachberry moonshine.
OMG, you and TIM both like the short setup on CAR.
A broken clock is right twice a day?
I wouldn’t necessarily say that “I” like the short setup on CAR. I would say that it may have an exploitable edge. I didn’t pick it..the screen picked it.
The difference between me and Tim? Tim has no clue about any edge. He trades a completely discretionary strategy while I seek to determine what about the setup gives it an edge, and then I purposefully design a system to exploit it.
Good work, Wood!!