Calhoun's 'Martingale Shotgun' Stock Trading strategy - New

Discussion in 'Trading' started by KCalhoun, Nov 20, 2020.

  1. KCalhoun

    KCalhoun

    for your consideration...

    Here's my latest swing trading strategy; I'm trading many different breakout, gap and pivot stocks and ETFs. I start off each position with less than $500 or so worth of shares for up to a couple of dozen positions. The goal is to scale into the winners for thsoe that produce a profit over several days time. By making such small initial trades, I minimize my up front risk.

    Today I bought many different stocks as well as hedging with inverse ETFs. This is a shotgun approach (aka spray 'n pray) designed to give me entries into the best high-volatility breakout setups.

    Let me know your thoughts on scaling into the winning positions. My idea is to have at least $100 unrealized profit in a trade before doubling into it. What I'd be interested in your ideas is a smart progression to use. For example; 1-1-2-4-8 or other scaling strategy. I suppose it depends on the relative strength of the swingtrading position as well as market conditions on the day in which I'm considering doubling into a trade.

    Here's the current positions I'm in; basically I just bought a lot of today's biggest percent gainers in addition to inverses as a hedge in case the market sells off Monday. Thanks for any suggestions!

    my current positions include:
    ACB
    AMC
    BLNK
    CCL
    CGC
    TLRY
    HPR
    NBEV
    AYRO
    CRON
    DKNG
    FCEL
    IDEX
    KXIN
    NETE
    NIO
    OXY
    PFE
    RIOT
    SOLO
    SPCE
    SUNW
    XPEV


    ETFs
    MJ TAN
    + inverses SDOW SQQQ UVXY TZA FAZ LABD SRTY SPXS
     
  2. deaddog

    deaddog

    (chuckle) When I was a kid there was a bounty on gophers. If you were a good shot you could make money with a 22. If you used a shotgun (410) it cost you more for the ammunition than what you made in bounty.

    At the end of the day although both shooters had the same number of gophers only one of them made a profit.

    Like trading those who a skillful are profitable.
     
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  3. BKR88

    BKR88

    Shot many myself with a .22 when I was young. No bounty needed. :D
    Uncle paid 25 cents per head for trapping pocket-gophers in his alfalfa fields.
    Used the .410 for pheasants, pigeons, etc...
     
    Last edited: Nov 20, 2020
    KCalhoun likes this.
  4. when you're trading random walks it's all about risk management. you cannot have conviction without a view and price data is not enough. I wouldn't recommend the "spray'n pray" approach, though if you do look trading like this, I would look into index (vs ETF) arb and m&a arb (through etf arb).
     
    KCalhoun likes this.
  5. KCalhoun

    KCalhoun

    Lol yeah I had a Remington 410 and ruger 10/22 as a kid.... now I like my Remington 56 12ga tactical pump, sig226 9mm and assorted glocks
     
    BKR88 likes this.
  6. easymon1

    easymon1

  7. KCalhoun

    KCalhoun

  8. danielc1

    danielc1

    I would go for 1,2, 1and not after a 25% up move ($100) but more quickly. I would like to be all scaled in within 25% move. Sell half of my position when a 100% move did happen after full scale in. Hold the other reminder forever or sell with a major reversal.

    The reason is to probe, and then put on conviction, but your biggest conviction should be early enough in the move. 25%, 50%, 25% for example.
     
    KCalhoun likes this.