sandp500trader Challenge: Stock Trades.

I’m starting this tread so we can stick with stock trades.

The “Opposite You” thread can trade options, forex, futures and whatever. All of that is outside whatever trading expertise I have.

I’ll post whatever trades I’ll take before I take them.

 

My Trading Plan for this exercise;

I will trade a couple well known trading set ups.
A 3 to 5 bar reversal and a hammer pattern.
I will look for 1 to 3 risk to reward.


I will scan the market EOD for stocks that have made a new swing high then dropped for 3 to 5 days.
Entry will be with a stop limit order just above the previous days high.
Exit will be near the swing high and below the swing low.or the previous days low. I'll post specific exits with the trade. (I will enter bracket orders and hold until one of the exits is hit.)


With hammer patterns I will enter the next day with a stop limit order just above the previous days high.
Exit will be below the hammer pattern and near last swing high. Specific exits will be posted with the trade.


Risk control:
Will risk 1% of capital on any one position. (Risk = difference between entry and stop)

 

Sounds great.

 

Below is a list of stocks I will trade if they get to the entry price.

I will place stop limit orders so that the order will be triggered when the stock trades at or above the entry price. The price I enter at will be limited to ½ % above the entry price to keep me out of gap situations. ( with a $20 stock the limit price will be $20.10 and with a $50 stock the limit will be $50.25)

CTRL Enter @ 32.88 Stop @ 32.10 Exit @ 35.50

ITT Enter @ 59.43 Stop @ 58.55 Exit @ 62.50

EVTC Enter @ 24.15 Stop @ 23.75 Exit @ 25.25

EPC Enter @ 56.52 Stop @ 55.54 Exit @ 59.17

MPLX Enter @ 35.71 Stop @ 35.14 Exit @ 38.00

FAST Enter @ 58.76 Stop @ 57.87 Exit @ 61.16

PAA Enter @ 26.15 Stop @ 25.64 Exit @ 27.55

BNS Enter @ 58.30 Stop @ 57.69 Exit @ 60.25





Risk and portfolio management.



I had planned on risking 1% of capital per trade but after looking at the number of trades I could realistically have open at one time I have reduced risk to 1/2% of capital. Even at that it looks like 4 open positions will employ all my capital. Once 4 positions have filled I'll cancel all outstanding orders.

 

These orders filled.

 

Filled

All other open orders cancelled

 

So, any that don't get stopped or hit target today, you'll hold overnight?

 

EPC Stopped out for loss of 0.52% of portfolio.

MPLX stopped out for loss of 0.50% of portfolio.


Holding FAST & PAA

Portfolio down 1.02%

 

So, if there were a big gap down tomorrow, you would just take the hit or do you hedge in some way?

 

Just take the hit. One of the drawbacks of a set it and forget it system.

I usually have the stop in my plan not in the market but for this exercise I'll use hard stops.