I found this linked to my blog here this morning, so I checked it out: http://bit.ly/brK4at.It was requested by some reader on CXO Advisory, so I am guessing it’s probably a hater that wanted to try to “get me”. Sorry buddy, but you failed. Here are some excerpts:
“Residual data constitutes 109 trades (a little over three per trading day) composed of 294 transactions (an average 2.7 transactions per round-trip trade) because of scaled exits. Of these trades 102 (7) are long (short). AIG is a favorite trading vehicle (29 of the 109 trades).”
“Weighting incremental exits equally, the average or arithmetic mean (median) holding period for these trades is 15 (8) minutes.”
“The following chart displays the gross profitability distribution for all 109 trades. The average gross return per trade is 1.24%, and the median gross return per trade is 0.29%. The standard deviation of gross trade returns is 4.81%. On average, trades are profitable so long as transaction fees are less than 0.46% of trade value (1.24% average gross return per trade divided 2.7 transactions per trade).”
“In summary, evidence from simple tests on a sample of limited duration indicates that John Lee’s trades are profitable so long as trade size is reasonably large (so that transaction fees are percentage-wise small). Estimating portfolio-level performance would require additional assumptions and modeling.”
“Another trader trying to follow John Lee’s trades would face timing issues (substantial execution lag compared to typical holding period) and would have to set a cash allocation rule (holding cash in reserve for potential new trades).”
———————
My comments:
If you are going to follow me, I suggest that you learn the way I trade. Execution, cutting losses, and position-sizing are absolutely critical. If you are following, notice how my trades last for only a few minutes. I you are not quick, you are dead. Also, notice the number of break-even trades? I have this way of defensively and aggressively cutting losses and I never ignore my rule. I also encourage everyone to build a profitable system (the one audited above was for my day trading strategies, I believe), instead of trying to find the holy grail. And yes, I do LOVE AIG, it is my favorite trading vehicle…but you guys already knew that.
Good luck trading this week!
If you enjoy the content at iBankCoin, please follow us on Twitter
It always amazes me that people like you have “haters”. WTF- You’re doing this for free- you’re not selling anything. Overall, you gain nothing by posting trades. (Okay- perhaps more interest in hiring you as a trading coach- but I would imagine you don’t really need that work.) If people don’t like your stream- they don’t have to read it! Where are all the trades posted by your haters? Astonishing.
Bought test $ABK 1.31, test $PALM 5.59
Bought more $ABK 1.33
Sold half $PALM 5.86
Sold 1/4 $PALM 5.86
Sold final $PALM 5.86
Sold 1/2 $ABK 1/61
Sold 1/4 $ABK 1.72/73
Sold final 1/4 $ABK 1.68
Bought $AIG 39.47
Sold 1/2 $AIG 39.72
Sold 1/4 $AIG 39.98
Sold final 1/4 $AIG 40.01
Casinos doing it AGAIN $MGM $WYNN $LVS
Bought $PALM 6.01/02
Sold 1/2 $PALM 6.24
Sold 1/4 $PALM 6.25
final 1/4 $PALM sold 6.17
AEZS needs volume but decent setup… sympathy play with KERX
Bought $FRE 1.479
Sold $FRE 1.4807, brb
atpg at 20.18
sold at 20.37
CPRX again
abk at 1.67
sold half at 1.90
the rest at 2.03
palm at 6.03
sold 1/3 at 6.11
sold the rest at 6.17
CPRX
again?
Bought more $ABK 1.79
Sold 1/2 $ABK 1.931
Sold 1/4 $ABK 1/94
Sold final 1/4 $ABK 1.94
Bought $PALM 6.18
gmr at 8.05, abk at 2.10
sold half gmr at 8.08
the rest at 8.07
sold abk at 2.23
short es at 1192.50
cover at 1192.25
I think it’s hilarious that people continue to try and “debunk” CA. If they would instead put even half of that energy into studying his actual methods via all of the knowledge that he’s (very generously) shared for all – at NO cost – via his many posts, educational articles, chart reviews, etc., they would quickly find out that HE IS THE REAL DEAL.
I’ve “quietly” watched him in action here and on Twitter, and his words, actions, and most important – his results – are totally consistent… and HIGHLY PROFITABLE.
Take advantage of John’s generosity in sharing his knowledge now. From what I’ve seen, he has little to gain personally from choosing to do so, other than the personal gratification that may come from helping others. Spending your time and effort trying to discredit him is a waste, and will be met with failure. Those of us who’ve followed his trading have seen this happen time and again.
Ignoring what he has to offer – again, which he provides at no cost to us – is truly like looking a gift horse in the mouth. Open your mind to opportunities as they are presented to you by people like John. They don’t come around often.
Addict, I follow your trades on Covestor and it doesn’t seem like you trade the breakout charts you generate for us. It seems like you trade very differently than what you preach. Also, you’re not fully cash at the close either.
And BRKB? C’mon, that’s not like you.
Bought $FRE 1.649
Bought $MIPI 4.149
Out $MIPI 4.08
Sold $FRE 1.62
Bought $MIPI 4.21
Sold $MIPI 4.31/32
Bought $CPRX 4.46
Bought $AGEN 1.64
Sold $CPRX 2.58
Sold $AGEN 1.52
Short $CPE 7.63
Cover 1/2 $CPE 7.52
Cover 1/2 $CPE 7.539
aezs at 1.20
out 1.19
Bought $ABK 3.22
Sold $ABK 3.23
bpop
out at 3.77 …….+10%
short es at 1187.75
cover 1188.75
PARD spike
a bit of vrs at 1.34 …..thin
sold at 4.60
aezs at 1.19
out at 1.16
PARD imminent
John,
Are you using TradeIdeas to scan for volume spikes? Thanks for all your great advice.