We could get together around a campfire and complain about the stock assassins and their research. We could heat up a pot of baked beans while we jeer about the move in precious metals in the fifteen minutes leading up to the #NoTaper Fed announcement Wednesday. Then we could sleep next to each other on the dirt staring up at the cosmos and cursing algorithms.
But that’s all loser talk, and I only like small doses of nature.
Instead, let us focus directly on what we can do. Solutions if you will.
We can manage risk. MHR is a different approach to entering stocks, I bought weakness. Normally I enter alongside strength. Traditionally I would have MHR on my watch list like it was, but I would wait for pricing greater than the last two days to show strength and momentum. Then it would stall out like it did today and I would sit through a drawdown. That method still works for me, but I’m working on anticipating the move a step earlier. I could have already taken a profit in the name, but I am moving purposely slower on these stocks.
Zillow caught me off guard. I saw it break my range, but I prefer to give stocks the benefit of the doubt meaning let’s see where it closes. The volume profile below was very thin, we cut right through it. I did not cut my loss. Perhaps I will regret this but the stock behaved constructively after the panic abated. I have managed myself out of uglier head fakes, and I have fumbled losing trades. That experience helps. As it stands, I am -6.43 % on a 10% position size. Oh the humanity.
Zillow and CLF did however knock me off my high water mark. CLF has not done me wrong yet. Is the trade wrong? No, it is only taking heat. I will take my loss when it is wrong. I lost my vision on this trade for a bit, but RaginCajun reaffirmed my vision.
There is gap supply coming into CREE. You have to imagine all of those underwater folks are eager to cash in now that they are being made (partially) whole. I put some trading capital into this name that needs to be separately managed from my investment.
A trade like RBCN makes up for 3 or 4 losers, this has been a forgiving market for longs.
I was green trading the ES this week, holding my own through some big waves. This is the most exciting part of my week. I cannot wait to build upon it next week and also to review my trades over the weekend.
I shut El Roi off before the Fed and have not turned him back on since. I would imagine he is chomping at the bit to get his grubby algo hands back on the tape but first I must go through the ceremonial revamp of optimizing and chanting and such.
Overall I am just happy to be here, banking coin alongside some of the most insightful minds in trading. If you have any tickers of interest or general trading/algo questions ga’head, ask me…I will answer them as best I can.If you enjoy the content at iBankCoin, please follow us on Twitter
I have MOS GE BRKB for many years. What do you think these in coming years ?
Can you recommend any good books on algorithmic and stat arb trading?
Dark Pools is an interesting history lesson, same goes for Automate This…but the best “how to” book I have seen is “High Frequency Trading: A Practical Guide to Algorithmic Strategies and Trading Systems” by Irene Aldridge.