Short signal

[Pascal]

The weekly rotated into the short stocks just before the close.

I will decide tomorrow regarding the trading strategy.


pascal

20285

[Riskslayer]

Hi Pascal,

I am enjoying the new Stock Selection section.

I understand that you are discretionarily trading from both the long and short suggestions and posting that under Portfolio Management. (If you could include the entry dates & prices on the trades, that would be helpful to me).

I gather you are using the Weekly Selections to compile the stats and to monitor the state of the market. This morning after the open, that section was showing long names with 9:34 am entries.. Now (after the close on Oct 8), its showing the short names with 3:57 pm entries and I see we are on a short signal from the 20d MF real-time.

Can you explain a little bit more about how the Stock Selection works when the 20D MF signal changes? e.g. can switches from long to short be made intraday? intra-week?

What was the switch process for the back-test data you have published?

Thanks,

Shawn

[Pascal]

Hi Pascal,

I am enjoying the new Stock Selection section.

I understand that you are discretionarily trading from both the long and short suggestions and posting that under Portfolio Management. (If you could include the entry dates & prices on the trades, that would be helpful to me).



The goal of the portfolio management is to show the process to select the trades from the daily list and manage the stops/exits. I note my entry price stating "around xxx," because I believe that the exact price is not important to understand the process.

The goal of this process is to minimize risks. Not to maximize gains.



I gather you are using the Weekly Selections to compile the stats and to monitor the state of the market. This morning after the open, that section was showing long names with 9:34 am entries.. Now (after the close on Oct 8), its showing the short names with 3:57 pm entries and I see we are on a short signal from the 20d MF real-time.

Can you explain a little bit more about how the Stock Selection works when the 20D MF signal changes? e.g. can switches from long to short be made intraday? intra-week?

What was the switch process for the back-test data you have published?

Thanks,

Shawn

When the 20DMF changes its signal, then the weekly trades are closed at the time of signal change and the new trades are taken from the current daily list. The new weekly list will then rotate after 5 complete trading days, which means Wednesday morning of next week.

The back-tests have been executed with a rotation at the open of the following day. Since the 20DMF RT gives on average better returns than the 20DMF EOD, a RT rotation should perform better.

As of now, I had no time to enter short trades, because the 20DMF changed its signal 3 minutes before the close.
Since I have three long trades, I need to manage these but from now on, I should concentrate on short trades.
That is tomorrow's work.

After a strong down day, we often have a bounce the following day. I could use this bounce to raise the stops on the long trades and enter new short trades. The problem with shorting this market is that any hint of a political solution will send everything to the roof.



Pascal