Friday, August 22, 2014

Trading operation changes

I'm making two changes in my trading operation.

First, the daily Round 2 series of posts, such as "Friday's Prospects: Round 2", will have a new series title that will include the symbols that make it to final consideration.

Under that naming scheme, the Friday post would be headlined, "Friday's Finalists: SMLP, KLAC, SLW, AGII", on the same model I now use for the Outcomes posts.

It will make it easier for everyone (me included) to see at a glance what the stand-out symbols are. If there are no finalists (it happens), then the headline will read: "Monday's Finalists: None".

Second, I'm changing the hedging portion of my longer-term trading rules to reduce the churn.

Under the prior rules, hedges were entered into when the price closed below the 20-day price channel, and exited when the price hit a stop/loss point twice the average true range above the lowest point reached during during the hedge period.

That method has a high risk of whipsaws and is frankly too short term for a position that's supposed to last a year.

I've modified it to conform to the classic Turtle Trading rules. Hedges are entered when the price moves below the 55-day price channel, and are exited when it moves above the 10-day price channel.

See the "Hedges" and "Hedge Exits" sections of my longer-term trading rules.

The classic Turtle Trading rules may be read here.

Tim Bovee, Portland, Oregon, Aug. 22, 2014

Tim Bovee, Private Trader tracks the analysis and trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment.
No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decisions for his or her own account, and take responsibility for the consequences.

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