Hi again everyone
I’m still experimenting with the FlagTader system. Just virtual trades in the main, with the exception of one small ‘real’ trade that I placed with IG Index on 7th May.
Why am I still just mainly paper trading? .. you might well ask. Answer:
1. Because of the recent Earnings Season, from which we’re just emerging. This period, apparently, is not a good time for FlagTrading; and
2. I’m still building-up my confidence with the system, as IMHO it might prove expensive to dive-in head first with real money, without first discovering under what circumstances (why, when and where) a trade could go TU.
Now then, during the two-week period from April-14 to April-29 I selected 19 potential trades which the FlagTrader system identified; a mixture of both bull flags and bear flags. The FT system selected the overwhelming 'good-looking' majority as bulls [i.e. 16 bulls – 4 bears], no doubt because of the recent up-trending stock market since early March. I deliberately included a handful of dubious stocks, just to see what happens to these alongside those that, at first view and according to the FT system, should more-than-likely breakout in the right direction and become profitable. The ‘iffy’ ones are, of course, more likely to enter into a drawdown situation and ultimately perhaps prove to be losers.
Results so far:
10 positions have closed GTC (good till cancelled) either by way of a pre-determined (1) limit order to close, or (2) stop loss.
I have 5 winners - with combined gains of 1303 points; and 5 losers - with a combined loss of 798 points. Resulting in an overall net profit on these filled orders of 505 pts.
2 trades were not triggered – and are now abandoned. I’ve walked away from these.
2 trades were absolutely ridiculous – and even I don’t understand why I selected them! [.. I must have had a ‘senior’ moment at the time, eh!?] - so I’ll discount these and say no more.
Five are still active. Three of these have yet to reach my pre-selected profit target – and have formed/ are forming ‘rounded tops’ *. The other two are just drifting along, more or less going nowhere – and unless they breakout in the right direction with the next 24-48 hours, I will also abandon these.
* Looking back at the three that have moved up, then drifted back down into a potentially losing position: With the benefit of what this paper exercise has taught me, I without question set my initial profit targets far too high. With the further benefit of wonderful hindsight, it’s clearly better to take a smaller first profit of say 150-250 pts, rather than setting the initial target at a whopping 664 points (yes, really, – that’s how naïvely optimistic I have been).
SUMMARY
So in summary, I’m still getting to grips with working the system properly.
Since May-01 I have selected another 16 stocks [15 bulls – 1 bear]. I have been far more diligent in my selection process with these this time. As mentioned, one of them is for real and is now in my ‘Orders to Open’ with IG Index. The order has yet to be filled BTW.
It will be interesting to see how I get on with this further selection, bearing in mind a potential imminent retracement from this now overbought [allegedly] recent two-month stock market rally.
CONCLUSION
So as I see it, my count suggests that there might be up to six of us newbie FTers posting on this thread, namely:
- Jchohan (June)
- Pjchalmers (Paul)
- Chris_P_D (Chris)
- Martinl (Martin)
- Andys280176 (Andrew)
--------------------
- Keith-H (myself)
Have I got this right? – If so, then it would be good to share experiences with you guys – and with this in mind, please do not hesitate to contact me if you think exchanging knowledge would be to our mutual benefit.
Cheers for now
KEITH
PS
... and thanks [for nothing!] Depth Trade. FYI I've just carried some cursory research into a few recent threads where you have contributed yet more inspired and incredibly mature advice to other members of this forum. Like:
how to prepare properly for an interview? [i.e. interviewing technique] .. in which your wise words of wisdom in post #7 are:
.. that's about all we need to know about you.
