As usual, I went with whatever the top stock on stocktwits happened to be. Today, it was UltraShort FTSE/Xinhua China 25 Proshares (NYSE: FXP). I’d rather have real companies rather than all these ETFs, but whatever… you deal with what you’re given.
I mark four trades on this chart, and my mechanical entry finder found three. The last one wasn’t mechanically identified because the first green bar still had negative volume pressure (on the histogram in the subgraph). But, two bars later, the volume pressure was building to the upside, and price hadn’t moved anywhere. So, I marked it. If that’s too much discretion for you, then feel free to disregard that trade.
Anyway, here’s the chart:
So, trade 1 had its volume pressure go into the red shortly after entry. It did hover near the entry price for a few bars after, allowing you to essentially scratch the trade. You wouldn’t quite break even, but you wouldn’t lose much. Trade two would either be a win or a loss depending on your money management. If you used the plot cycles to manage risk, then it would be a big win, and there would be no trade 3 for you. If you used the top of the bar, or the moving average for your stop, then you took a small loss. Then, trades 3 and 4 were nicely profitable.
Look back across the simple-stock-system posts, and you’ll see that every darn one of them looks pretty good. They aren’t all perfect, but none of them look horrible. That’s saying a lot, since it is such a simple system. If you are curious about the rules and setup, etc, just look at one of the recent past posts… I repeat them every so often.
What is the settings for cycle MA ? Looks like faster than 3,21 setting.
It’s the kaufman adaptive moving average, and not the cycle moving average.
Hi Richard,
I enjoy checking out these setups here on your website. Was hoping you could feature QLD the next chance you get.
-todd
FXP is manipulated by the traders and fund managers. Do not buy this stock. When general market goes up, FXP drops disproportionally; when the general market increases, FXP does not increase much.
FXP is not a real financial device. It is a trap for investors. It is a case for financial lawyers to look into.
Good to know Roger. As you know, I didn’t pick the stock… I just went with whatever was most discussed on stocktwits. I prefer trading companies rather than ETFs anyway.
But, since this is a daytrading site, if it has tradeable moves then it is fair game!