Hi, good site keep up the good work. Is your portfolio actually real or just simulation. I see that you keep your initial investments around 10% of your overall capital. If your riding a trend upwards on a particular stock woud you move more funds into that stock?
This portfolio is real. Purchases were made on-market on the day indicated on the spreadsheet.
Yes, coincidently it turned out to be about 10% of total capital per position size, but my actual money management technique is to risk 1.5% of total trading capital per trade.
I pyramid into my positions once that are at or above 15% profit.
The forth column on the spreadsheet is the initial stop.
For PWK this is $4.25. So a weekly close at or below $4.25 and I would exit the following week.
This week's close was $4.70 so I do give them a bit of room.
This was also evident in my testing, average holding time for a loser almost 60 days. So i give them plenty of time to prove themselves.
After I have more than 1 bar of data, the trailing exit can be calculated (MetaStock will do this for me). While the initial stop never moves and is the maximum loss we can tolerate, the trailing stop will move with the price (only upwards) and aims to capture as much profit as we can.
I started out in trading early 2005 through managed funds.
November 2005 started in stocks through fundamental analysis.
After the 2006 May correction I learnt to use stops!
A few months afterwards I read Michael Covel's book and it was a real eye opener for me into what can be achieved through mechanical systems trading.
In 2009 I started looking seriously at short term automated trading through AmiBroker/IB as this would allow for all the benefits of short term trading (smoother equity curve, faster recovery from drawdowns, etc) without the associated screen time.
5 comments:
Hi, good site keep up the good work. Is your portfolio actually real or just simulation. I see that you keep your initial investments around 10% of your overall capital. If your riding a trend upwards on a particular stock woud you move more funds into that stock?
Hi Matt,
This portfolio is real. Purchases were made on-market on the day indicated on the spreadsheet.
Yes, coincidently it turned out to be about 10% of total capital per position size, but my actual money management technique is to risk 1.5% of total trading capital per trade.
I pyramid into my positions once that are at or above 15% profit.
Thanks for dropping by.
Nizar.
Nizar,
I noticed PWK has come down a bit. Has it triggered an exit?
Jeton
Hi Jeton,
The forth column on the spreadsheet is the initial stop.
For PWK this is $4.25.
So a weekly close at or below $4.25 and I would exit the following week.
This week's close was $4.70 so I do give them a bit of room.
This was also evident in my testing, average holding time for a loser almost 60 days. So i give them plenty of time to prove themselves.
After I have more than 1 bar of data, the trailing exit can be calculated (MetaStock will do this for me). While the initial stop never moves and is the maximum loss we can tolerate, the trailing stop will move with the price (only upwards) and aims to capture as much profit as we can.
Nizar.
Ahuh, I obviously didnt look at the spreadsheet close enough.
Cheers,
Jeton
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