Linkon, Y'day A small qty of Nelco bot @ 65.40 through hit of Stop Buy Order. Plz suggest me shall i hold for some times or sell immediately at a minor loss. Iam vigorously trying 2 follow ur system though it will take some time to understand the system fully. Y'day i could not buy Gail as it hit entry level at the closing minute. Will it be right 2 buy Gail 2day at lower Price? One doubt i observed that some of the symbol u removed as they hit SL but some u retained though hit SL. Plz clarify in ur spare time. Thanks & Happy Trade.....SMuncle
Kaku,
Try to observe one thing about this system. We are trading the daily timeframe. That means, the price at the end of the day (last 5 to 10 min) is what matters.
Intraday, the stock might hit the breakeven (20 day high) and come down and close below the entry. That stock does not make it to the portfolio.
We are not trying to time the entry. Its Simply not required. The investment is just 5% of the total capacity (in my case, its 10 K). We are buying just 25 qty of a stock valued at 400. if we get it at 398, we gain an extra 50. if we get it at 402 we lose 50. It's not worth the time and energy to track a stock whole day to gain a small extra. That will only hamper with your longer view the stock (daily time frame). Many times, u end up with a stock that is not supposed to make it to the list.
The logic here is we select 20 stocks who are in a uptrend in the long term (135 days) and mid term (55 days) , but the trend is down in the short term (10 days). There is a possibility that the stock's short term trend become the mid term trend and then enter downtrend in the long term.
Nelco, u can hold as long as it doesnt close below 60.10. It's uptrend is intact in the long term and mid term. its not a worry.
I'll post the list for the next day everyday. Just watch the stock in the list, at the end of the day (from 3.20 to 3.30 pm), if any stock looks like its definitely going to close above the entry trigger, then buy it. The low of that day becomes the stoploss for the next day. next day, get rid of the stock once the stop loss is hit.
ps : this is just an experiment. Please dont trade it without paper trading it first.