Daytrading UltraShort FTSE/Xinhua China 25 Proshares (NYSE: FXP)
Posted on November 14th, 2008
Written by Richard
Posted in: N/A (old archives)
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.
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© 2010 Richard Todd. I am not a financial advisor, and nothing on the site should be considered investment advice or actionable recommendations. I'm just an individual, saying what I think, and sharing my experiences.