Buyers In Control - December 2, 2011

[jerpk]

Pierre,
There are no position-sizing rules from the robot. All position-sizing and leverage decisions are your own responsibility.
I previously gave an example of my own discretionary guidelines in the current conditions.
First, I always enter a full TNA position at the initial limit, say 1,000 shares at 43.77 yesterday. I place my initial stop for 666 shares just under the first support cluster and for 334 shares at the robot’s stop.
Once I see a higher low from my entry followed by higher highs, I exit 333 shares at a 39% retracement and 333 shares at a 51% retracement. The remaining 334 shares are managed exactly like a robot position.
The proceeds of the 666 shares should only be reinvested at a robot’s entry limit if there are buy settings and the same stops and retracements guidelines apply from there.
Today, 1/3 of my TNA (entered at 43.77) was stopped out at 45.29 and 1/3 at 44.99. I am still long 1/3 position but wont scale back-in my 2/3 position before a new active buy limit price.

Attachment 11690

The first retracement line is at 23.6% retracement and puts me on alert for potential stops triggering.

Again, these are not backtested rules but just an example of my current handling of leverage in the context of the robot because I was asked and tried to help.
Billy

Billy--I don't understand how you determine the point from which you draw the fibonacci lines to determine your exit points. You mentioned a higher high and higher lows, but I see lots of them. Forgive the stupid question but I have a lot to learn! Thanks for all the great teaching on this site. Jerry Kuhn

[Billy]

Billy--I don't understand how you determine the point from which you draw the fibonacci lines to determine your exit points. You mentioned a higher high and higher lows, but I see lots of them. Forgive the stupid question but I have a lot to learn! Thanks for all the great teaching on this site. Jerry Kuhn

Jerry,
I like to use the 30-minute chart highs and lows references. At the open today, we knew that yesterday’s close was the first higher low since entry and we had our higher highs. I draw the fib retracement up to the new highs and keep adjusting with additional new highs.
Billy