Technical Trading Exercise (Pavilion103 and tech/a) Discussion

[statmech71]

Re: Technical Trading Exercise---Discretionary, (Pavilion103 & tech/a)

Nothing coming up on scans.
So we are in cash with the exercise.
When we have some some for the watch list
I'll post them up.

No continuation patterns.

Tech,

with hints of bullishness returning to the markets, just wondering if your scans are getting any hits. If so, would you act on these hits immediately or are there other criteria to be triggered before engaging in this type of trading again.

 

[tech/a]

Re: Technical Trading Exercise---Discretionary, (Pavilion103 & tech/a)

Tech,

with hints of bullishness returning to the markets, just wondering if your scans are getting any hits. If so, would you act on these hits immediately or are there other criteria to be triggered before engaging in this type of trading again.

You must be reading my emails to PAV

There are a number of signals appearing.
I have posted around 10 to PAV

I also discussed opening this thread up again.
PAV is happy to start up a new spread sheet.
Will post up som in the coming days.

 

[statmech71]

Re: Technical Trading Exercise---Discretionary, (Pavilion103 & tech/a)

Thanks - really looking forward to it!

 

[tech/a]

Re: Technical Trading Exercise---Discretionary, (Pavilion103 & tech/a)

New post coming in locked thread once Joe opens it for me.

 

[pavilion103]

Well it looks like we are up and running again.

Tech wondering if you could make some reference to XAO conditions and the impact, if any, on our setups or more importantly trade management. Maybe we can periodically refer to this as we go?

 

[tech/a]

Re: Technical Trading Exercise---Discretionary, (Pavilion103 & tech/a)

Well it looks like we are up and running again.

Tech wondering if you could make some reference to XAO conditions and the impact, if any, on our setups or more importantly trade management. Maybe we can periodically refer to this as we go?

Yes was going to do that.
Having a good look at it---it appears inconclusive and somewhat contradictory---at the moment. (The XAO)
As we know markets are dynamic and currently the market is altering on a weekly basis.

In times like this all we can do is follow the signals and manage all trades aggressively.
Once clear then we can relax trade management if in our favor.

But I will comment when I have some time.
Currently have parent problems which you all may have when they get to 90!

 

[brty]

Re: Technical Trading Exercise---Discretionary, (Pavilion103 & tech/a)

Tech,

I noticed one of the patterns you are following is the high and tight pattern of SHV, I bought the breakout today as I have been following this for a while.

It often has very thin days in volume. Do you make an allowance for possible wide spreads when instigating the 2% stoploss rule?
Would the corresponding position size be smaller for a thinly traded stock as compared to FLT, another one that instigated a buy today?

 

[tech/a]

Re: Technical Trading Exercise---Discretionary, (Pavilion103 & tech/a)

Tech,

I noticed one of the patterns you are following is the high and tight pattern of SHV, I bought the breakout today as I have been following this for a while.

It often has very thin days in volume. Do you make an allowance for possible wide spreads when instigating the 2% stoploss rule?
Would the corresponding position size be smaller for a thinly traded stock as compared to FLT, another one that instigated a buy today?

Brty

You bring a valid point and one we (I) do consider.
Every now and again I have been caught where it turns quickly and Im left being stopped.
but in general volume is at least enough to trade when momentum kicks in.
The setups are meant to be in advance of Momentum.

My plan with this type of trading is to get to B/E as early as possible --- which Im sure will have people questioning the thinking.

Each I treat as the same.
I do have a liquidity filter in scans and have never had a problem with excessive slipage or not being able to be filled.

 

[tech/a]

Re: Technical Trading Exercise---Discretionary, (Pavilion103 & tech/a)

4 Trades entered today.
Will post charts on the other thread.

 

[pavilion103]

Re: Technical Trading Exercise---Discretionary, (Pavilion103 & tech/a)

4 Trades entered today.
Will post charts on the other thread.

Good work.Spreadsheet updated daily from now on.

I'm not sure if I missed this in the other thread (not that it matters greatly), but what account size are we using?

 

[tech/a]

Re: Technical Trading Exercise---Discretionary, (Pavilion103 & tech/a)

Good work.Spreadsheet updated daily from now on.

I'm not sure if I missed this in the other thread (not that it matters greatly), but what account size are we using?

Say $100K
that leaves another $100k for
use with margin if required.

Ill email you direct the Position sizing etc and will
post a fully marked up chart either a week later or
if the trade is closed before.

 

[debtfree]

Re: Technical Trading Exercise---Discretionary, (Pavilion103 & tech/a)

Tech/Pav

When you scan for breakouts, what is your thoughts behind them in regards to the number of days for a new breakout. What is your shortest and longest scan?

I was thinking a longer breakout scan would probably have a big pattern under the breakout price indicating a possible big price move upward so if you can get a small low risk trade just above breakout level, excellent.
Is this what you look for after a breakout appears in your scans, a larger pattern under breakout level?

Am I on the right line of thinking?

 

[tech/a]

Re: Technical Trading Exercise---Discretionary, (Pavilion103 & tech/a)

Tech/Pav

When you scan for breakouts, what is your thoughts behind them in regards to the number of days for a new breakout. What is your shortest and longest scan?

I was thinking a longer breakout scan would probably have a big pattern under the breakout price indicating a possible big price move upward so if you can get a small low risk trade just above breakout level, excellent.
Is this what you look for after a breakout appears in your scans, a larger pattern under breakout level?

Am I on the right line of thinking?

No not really.

I dont want breakouts I want potential breakouts.
Among other things which are NOT breakout related.
I havent any of this sort up yet but will explain when they are.

I have criteria I scan.

Being an alert of various breakouts 5 days ago.
Along with a liquidity filter.
I have 4 codes which give me many prospects.

From there I then use the discretionary filters IE Visual filters.

These are in general terms.

The trade must be in an obvious trend or an obviously emerging trend.
There must be a clear and tight micro pattern (generally).
There must be signs of momentum gathering or in place.
There must be signs in the pattern that demand is not being swamped by supply.
Or a clear lack of supply.
I must be able to get a very tight risk parameter.

I also have a look for any clear Elliott count.

 

[Trembling Hand]

Re: Technical Trading Exercise---Discretionary, (Pavilion103 & tech/a)

I dont want breakouts I want potential breakouts.

A lot in that. I suspect way way to hard for wanna beezzz

 

[debtfree]

Re: Technical Trading Exercise---Discretionary, (Pavilion103 & tech/a)

Thanks Tech for you reply and further help, I appreciate it very much.

Your chart below triggered my thoughts in my previous post about a larger pattern below the breakout bar. That's all clear now with your detailed post.

I do at the same time understand what you are saying in regards to wanting potential breakouts from the micro patterns.

Thanks for the updates of the charts tonight, it's really good to see them being manage as we go along.

 

[tech/a]

Re: Technical Trading Exercise---Discretionary, (Pavilion103 & tech/a)

good to see them being manage as we go along.

Every day when necessary.
When your TRADING its not set and forget.

Cause if you do then it will bite you like my FTSE trade tonight!
Was an expensive meal!

 

[pavilion103]

Re: Technical Trading Exercise---Discretionary, (Pavilion103 & tech/a)

Brilliant.

Risk already reduced considerably on a few of the positions.

 

[debtfree]

Re: Technical Trading Exercise---Discretionary, (Pavilion103 & tech/a)

Tech

Maybe asking a little too much but going to ask anyway.

I know you can't label live charts with ASX Codes but are you able to label them with a number say, No:1, No:2 and so on. I'm printing them out for my records and study.

Thanks for any consideration.

 

[pavilion103]

Are we taking slippage into consideration?

For example FLT just just gapped down below breakeven (only by a out 10 cents).

The same for trade execution?

Or does this not come under consideration in order to simplify this exercise? Whilst acknowledging that some slippage may occur?

 

[skc]

Re: Technical Trading Exercise---Discretionary, (Pavilion103 & tech/a)

Are we taking slippage into consideration?

For example FLT just just gapped down below breakeven (only by a out 10 cents).

The same for trade execution?

Or does this not come under consideration in order to simplify this exercise? Whilst acknowledging that some slippage may occur?

It seems to make sense to run this exercise as realisticaally as possible.

Especially when you take trades in the likes of FLT (whose spread is always wide) and as you take on bigger positions - the liquidity won't always be there.