The Power Dip system is a long-only, dip-buying, swing-trading system.
System Features:
- Risk and stop levels can be customized to suit the personality and goals of the trader.
- Proprietary ranking system ensures the best edge is maintained when choosing from multiple signals.
- All stock signals meet a minimum level of volume and liquidity.
- System will slow down or turn off when the market environment is unfavorable.
Subscriber Benefits
- System picks for next day published before 9:00 p.m. Eastern time.
- Exit threshold published with every entry signal and updated every evening until trade is closed.
- Subscribers are emailed an alert before the close when an exit threshold has been exceeded.
- Archive of all signals including tracking of wins/losses and percentage gains.
- Access to backtested historical results derived from trading the system with various risk and stop levels.
- Blog will be used to discuss system events as well as to publish regular updates on performance.
- Access to user forum.
Launching Soon
I announced on September 19th that the Power Dip would be made available for subscription. It has taken longer than I would have liked to get it ready. This is due to iBC having its fingers in many different projects. However, waiting a bit longer turns out to have been fortuitous as the system has weathered a drawdown. I feel strongly that this is an excellent time to launch as the likelihood of another steep drawdown in the equity curve is slim. Launching now helps get subscribers started at a place where they will not be chasing out-performance.
Look for updates soon!
Sounds good!
Since you said subscribers would be emailed an alert before the close when an exit threshold has been exceeded, does that mean you would advise no longer just trading at the open?
Michael, selling at the close improves performance significantly, roughly ~7% added annualized. I am working to figure out why, but my best theory is that the system buys weakness and sells strength. Thus, we are more likely to get a price improvement on the buy (since the stock has been weak and falling) and likely to get negative slippage on the sell since the price has been going up and is subject to profit taking.
However, I still trade the opens, as that is what I can do, so it no way invalidates the system if you can sell at the close.
I’ve noticed that too – I’ve often found that the stocks will go down after I buy them and keep going up after I sell them.
Have you tried anything like, if the market opens badly, waiting an hour or some other amount of time before buying in, and, if the market opens strongly, waiting a little while before selling? I know you can’t trade during the day, but would it be possible for you to try a modified backtest for those of us who can?
Despite our best efforts we will never get a perfect entry and exit. Unfortunately I cannot test waiting an hour or so because all I have is OHLC data. I would have to have tick/intraday data. We can however adjust the exit criteria to be higher and test limit orders on the open, placing them lower than the previous days close. I’ll put that on the to-do list.
Great, thanks!
i’m looking forward to this
Sounds great. Will you offer a discount to PPT subscribers? It would be cool to be able to buy “the iBC bundle”, rather than buy both products individually.
Dr. Evo, that would be up to Senor Fly. Maybe he’ll chime in here.
…Paging Dr. Fly to Woodshedder’s office…
How’s your business model going to work on this? Are you taking funds and subtracting fees, or is it just a consultation model?
Mr. Thaler, monthly fee, with a break for signing up for multiple months in advance, i.e., 6 , 12, etc.
How do you allocate funds to it’s purpose?
Mr. Thaler, we will have a payment gateway set up shortly, similar to the one we use with the PPT. I imagine that it will be of the Pay Pal variety, or similar.
Will you provide data on drawdowns, time in and out of the market,etc.?
Absolutely will provide that. From memory, largest drawdown is near 16%, with the average trade lasting around 5 days.
Exposure (time in the market) is near 40%.
I will put up all the statistics soon, and I will show a couple of different ways to trade it in terms of risk and stops.
I’m interested in the effect of commission fees on your system.
Excellent consideration. Commissions of .008/share were included in all backtests.
This is consistent with a commission structure from a broker like Tradestation.
Thanks.