I apologize for not being more clear. I use 2% as an initial stop only on the first day in order to limit my potential loss from a Failed Break Out (FBO). After the first day, I use the same 5% stop as always in order to give plenty of 'wiggle room' for our positions. Again, I apologize for the confusion. - Spydertrader
Again, I should have been more clear when describing the change in initial stop loss levels. I apologize for the confusion that has resulted. Due to the collaborative efforts of individual traders posting to this Journal over the last 9 months, the system we trade today differs greatly from the one I described at the beginning of the Journal. These many contributions have had the effect of improving my overall performance over which I experienced before I began posting last September. Although the fundamental principles behind The Jack Hershey Equities Method remain the same, the current iteration provides an increased number of possible trade signals than the one I described some 200 pages ago. However, this increase in signals has come at a price, and that price is a slight increase in risk in the form of increased number of False Break Outs (FBO). In order to mitigate that risk, I have experimented with a variety of methods involving varying stop size, position size, and varying exit criteria. By using a 2% stop on the first day ONLY, I hope to reduce the magnitude of those losses resulting from the increase in number of FBO occurrence on day one. Again, I apologize for the lack of clarity contained in my previous post, and I hope the above paragraphs answer your question. - Spydertrader
2005-06-13, Monday - Lists Hershey Wealth-Lab Chartscript Culling Methodology Hershey Chartscript Scans / Qcharts Culling / Stocktables.com Sort Hot List FORD MCRI XXIA Dry Up Stocks EXM EZPW JUPM MFLX TASR USG Hot List Stocks Scores FORD - 5 MCRI - 0 XXIA - 0 Dry Up Stocks Scores EXM - 7 EZPW - 7 JUPM - 0 MFLX - 0 TASR - 0 USG - 5 Keep an Eye on These Stocks EZPW (Attached) <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=766828>
2005-06-13 - Current Final Universe BCSI DCAI ELOS EXM EZPW FORD GDP HANS IMAX JUPM MCRI MFLX PARL SIGM SNDA TASR TRGL UBET USG VDSI XXIA The following equities have failed to maintain their rank. I plan to remove them from the above list at the end of the month. GDP IMAX SIGM SNDA - Spydertrader
2005-06-13, Monday - Update This morning I monitored one list of stocks (6 total equities): Those equities from our daily Hot List and from our Final Universe List finding themselves "In Dry Up." Dry Up Stocks EXM EZPW JUPM MFLX TASR USG Our system generated two possible trade signals from the list of 6 Dry Up Stocks when actual volume exceeded calculated "Low Band" Dry Up Volume prior to 11:30 AM. Dry Up Stocks Triggering Signal EXM TASR Dry Up Stocks NOT Triggering Signal EZPW JUPM MFLX USG EXM did not show price improvement at time of signal generation (10:56 AM). As a result, we eliminate EXM from further consideration. TASR did show price improvement at time of signal generation (9:33 AM). In addition, both MACD and The Stochastic Indicator fell within desired parameters. However, Price for TASR experienced a 6% gap up at the open. My rules prevent me from entering into a position when a stock gaps up by more than 5%. As a result, I took no action with respect to TASR. The particulars for TASR at time of signal generation are as follows: TASR Time: 9:33 AM Price: $11.54 MACD: +.0977 Stoch: 92.222 Score: 0 FRV: 7,470,797 shares - Spydertrader
2005-06-10, Monday - MFLX I received several questions via email and Elitetrader PM this afternoon regarding MFLX and why I did not indicate the generation of a trade signal. According to my data, actual volume for MFLX exceeded calculated Dry Up Volume at 11:31 AM - after our normal cutoff. However, many individuals indicated they received a signal for MFLX at 11:27 AM - before our normal cutoff. After reviewing time and sales from my back-up datasource, it appears as our system did actually trigger a trade signal today at 11:27 AM for MFLX. Although I took no action with respect to MFLX, congrats to those individuals that did profit from this signal. The particulars for MFLX are as follows: MFLX Time: 11:27 AM Price: $16.78 MACD: +.0815 Stoch: 88.0145 Score: 0 - Spydertrader
2005-06-13, Monday - Lists Hershey Wealth-Lab Chartscript Culling Methodology Hershey Chartscript Scans / Qcharts Culling / Stocktables.com Sort Hot List FORD MCRI XXIA Dry Up Stocks EZPW JUPM MCRI USG Hot List Stocks Scores FORD - 0 MCRI - 0 XXIA - 7 Dry Up Stocks Scores EZPW - 2 JUPM - 7 MCRI - 0 USG - 5 Keep an Eye on These Stocks FORD (Attached) <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=768185>
2005-06-14, Tuesday - Update This morning I monitored one list of stocks (4 total equities): Those equities from our daily Hot List and from our Final Universe List finding themselves "In Dry Up." Dry Up Stocks EZPW JUPM MCRI USG Our system generated one possible trade signals from the list of 4 Dry Up Stocks when actual volume exceeded calculated "Low Band" Dry Up Volume prior to 11:30 AM. Dry Up Stocks Triggering Signal MCRI Dry Up Stocks NOT Triggering Signal EZPW JUPM USG MCRI did show price improvement at time of signal generation (10:55 AM). In addition, MACD Histogram showed a positive return. However, The Stochastic Indicator failed to achieve desired levels. As a result, we eliminate MCRI from further consideration and take no action with respect to trading this equity. The particulars for MCRI at time of signal generation are as follows: MCRI Time: 10:55 AM Price: $21.74 MACD: +.0697 Stoch: 55.8556 Score: 0 FRV: 303,820 shares - Spydertrader