End of Quarter - September 30, 2011

[Pascal]

I was re-reading documents written by Pascal last night-Trading IWM and IWM/GDX robots Investments in the context of a Portfolio. In his research he checked the outcomes of EOD trading and trading at the open of the next day. Moreover, I see the limit order recommendations on the Robot each morning before the market opens. Are the signals from the Robot updated during the day, or what buy/sell numbers are suggested for EOD trading? So far, I have been just entering the limit recommendations before the open each day and hoping that the order gets placed. I think I'm probably missing something. Can someone help me out.
Thanks,
Buzz

You are right: the IWM Robot works on limit orders. The signals are available before market opens and are not updated during the day. What you are doing is correct and you then are probably running a short IWM position by now.


Pascal

[buzzman]

Thank you. bz

[buzzman]

Oftentimes the limit entry from the Robot is never hit on the day following. Today TZA is a good example, the limit setting was for 47.35 and TZA never dropped to that level. How is this situation handled by the Robot (in backtesting) and more importantly by experienced traders? Appreciate the help. bz

[Pascal]

Oftentimes the limit entry from the Robot is never hit on the day following. Today TZA is a good example, the limit setting was for 47.35 and TZA never dropped to that level. How is this situation handled by the Robot (in backtesting) and more importantly by experienced traders? Appreciate the help. bz

The robot enters as soon as a the first limit order is hit and stays in the trade. Today's TZA buy limit was a secondary order, but the robot has already entered its position (Short IWM) a few days ago and hence does not enter a second position. Therefore, in back-tests, we only consider the first position.


Pascal