Regarding the new service coming out soon, it was long GMCR from
$115.99 last week, been long AAPL from 599 etc. Here's an example
the orders last weekend and how easy it will be for you to follow.
The trades will be sent to you in a list on Sunday with exact
orders for new trades, and adjusted stops and targets on new
trades. Orders come once a week and you can simply place all
the orders on Sunday or Monday morning with your broker
New Trades
Ticker
Last Close
Buy Stop
Stop Loss
Profit Target
CAT
102.23
105.54
97.12
116.09
SBUX
73.24
73.79
60.79
86.33
WAB
78.74
79.00
66.93
89.27
Existing Trades
Ticker
Entry Price
Last Close
Old Stop Loss
New Stop Loss
Profit Target
AAPL
599.44
633.00
584.39
612.86
689.36
ALXN
158.17
166.32
153.38
163.5
173.21
BA
130.42
135.25
124.6
131.04
142.15
GMCR
115.99
112.78
94.64
105.4
126.42
MA
74.01
76.45
74.01
74.35
80.72
NKE
73.72
76.91
65.12
74.11
81.81
REGN
303.33
306.96
247.15
278.23
348.45
UNP
189.97
199.27
188.87
194.82
212.16
Outstanding Trades
New Trades
New Trade #1:
Place a good till canceled buy stop market order on
Caterpillar Inc. (CAT)
at 105.54.
Then, if and only if this order is filled, place a good till
canceled stop loss order at 97.12 and a profit target at
116.09
New Trade #2:
Place a good till canceled buy stop market order on
Starbucks Corporation (SBUX)
at 73.79.
Then, if and only if this order is filled, place a good till
canceled stop loss order at 60.79 and a profit target at
86.33
New Trade #3:
Place a good till canceled buy stop market order on
Westinghouse Air Brake Technologies Corporation (WAB)
at 79.00.
Then, if and only if this order is filled, place a good till
canceled stop loss order at 66.93 and a profit target at
89.27
Apple Inc. (AAPL)
Cancel and replace your good till canceled stop loss of
584.39
New stop loss price: 612.86
Alexion Pharmaceuticals, Inc. (ALXN)
Cancel and replace your good till canceled stop loss of
153.38
New stop loss price: 163.5
The Boeing Company (BA)
Cancel and replace your good till canceled stop loss of
124.6
New stop loss price: 131.04
Keurig Green Mountain, Inc. (GMCR)
Cancel and replace your good till canceled stop loss of
94.64
New stop loss price: 105.4
Cancel and replace your old profit target at 127.33 with a profit
target at 126.42
MasterCard Incorporated (MA)
Cancel and replace your good till canceled stop loss of
74.01
New stop loss price: 74.35
Nike, Inc. (NKE)
Cancel and replace your good till canceled stop loss of
65.12
New stop loss price: 74.11
Regeneron Pharmaceuticals, Inc. (REGN)
Cancel and replace your good till canceled stop loss of
247.15
New stop loss price: 278.23
Union Pacific Corporation (UNP)
Cancel and replace your good till canceled stop loss of
188.87
1) It's nice to have something a little more concrete in terms
of trade setups. I assume this might be a precursor to
something you'd put through dittotrade at some point.
2) That being said, These types of trades look like
textbook bull call spreads, buying a 90 delta in the money 2-3
months out, and selling a 10-15 delta out of the money in the short
month to offset the time decay of your ITM call, then repeating the
sale of an OTM call. It gives an element of the covered
call.
This is much preferable for risk management instead of the huge
stop losses you're looking at in these trades. The SBUX
trade, for instance, looks like a bit of a head scratcher, entry at
73 plus, exit at 60 or 86, which is an initial 1:1 r/r ...
Ties up 90% less capital, too, if all
one is going to do is swing trade these for a few weeks. Even
if one wants to book profits in the stock for the long-term, that
can be done, albeit at the exit price, not the entry price.
For instance, a 2x2 diagonal for SBUX, using the long AUG
67.5 ($8.30) and short Jul 80 (25c credit) would only cost you
about $8.05 (vs 13 pt max loss in your example). The
great advantage is the built-in stop loss of only the value of the
long call, but one tends to do even better than that recapturing
time value if the underlying slide to the ATM strike well before
the expiry date.
Most trades fail because of lack of execution and placement of
sell orders. Options intrinsically take care of much of
that. I suppose Dittotrade would, too, but the options
route would be more risk averse and is the direction a lot of
people are heading.
Yes the system gives wide stops at first, however these quickly
move up and we also adjust these and many times move them up
ourselves against the system. Sometimes we are wrong and move
the stop too tight, but we think it's best to monitor the systems
trades look at a charts and see if they make sense. Are the
profit targets reasonable or not, we may move them down if we don't
feel they can be hit. Are the stops logical. Also many
times we won't take a system trade, for example if a stock was up
too many days in a row and the system wants to buy, we won't take
it.
Yes you can trade options of course - we'll leave that up to you
for those who are proficient in options.
Yes this could be done through Ditto Trade, however we don't
have any plans for that at first, however if the interest is high
enough we will add it.
Matt, I think this service would be perfect for Ditto Trade
considering the number of securities involved and the # of moving
parts, more so than the SPY system in my opinion.
What's a profit/loss ratio for the system based upon which
trades are to be run? Are trades going to be based on the BTP MA
Deluxe or another indicator?
Example of the New Service Trades formate
Posted by matt on 7th of Jun 2014 at 09:55 pm
Regarding the new service coming out soon, it was long GMCR from $115.99 last week, been long AAPL from 599 etc. Here's an example the orders last weekend and how easy it will be for you to follow. The trades will be sent to you in a list on Sunday with exact orders for new trades, and adjusted stops and targets on new trades. Orders come once a week and you can simply place all the orders on Sunday or Monday morning with your broker
New Trades
Ticker
Last Close
Buy Stop
Stop Loss
Profit Target
CAT
102.23
105.54
97.12
116.09
SBUX
73.24
73.79
60.79
86.33
WAB
78.74
79.00
66.93
89.27
Existing Trades
Ticker
Entry Price
Last Close
Old Stop Loss
New Stop Loss
Profit Target
AAPL
599.44
633.00
584.39
612.86
689.36
ALXN
158.17
166.32
153.38
163.5
173.21
BA
130.42
135.25
124.6
131.04
142.15
GMCR
115.99
112.78
94.64
105.4
126.42
MA
74.01
76.45
74.01
74.35
80.72
NKE
73.72
76.91
65.12
74.11
81.81
REGN
303.33
306.96
247.15
278.23
348.45
UNP
189.97
199.27
188.87
194.82
212.16
Outstanding Trades
New Trades
New Trade #1:
Place a good till canceled buy stop market order on Caterpillar Inc. (CAT) at 105.54.
Then, if and only if this order is filled, place a good till canceled stop loss order at 97.12 and a profit target at 116.09
New Trade #2:
Place a good till canceled buy stop market order on Starbucks Corporation (SBUX) at 73.79.
Then, if and only if this order is filled, place a good till canceled stop loss order at 60.79 and a profit target at 86.33
New Trade #3:
Place a good till canceled buy stop market order on Westinghouse Air Brake Technologies Corporation (WAB) at 79.00.
Then, if and only if this order is filled, place a good till canceled stop loss order at 66.93 and a profit target at 89.27
Apple Inc. (AAPL)
Cancel and replace your good till canceled stop loss of 584.39
New stop loss price: 612.86
Alexion Pharmaceuticals, Inc. (ALXN)
Cancel and replace your good till canceled stop loss of 153.38
New stop loss price: 163.5
The Boeing Company (BA)
Cancel and replace your good till canceled stop loss of 124.6
New stop loss price: 131.04
Keurig Green Mountain, Inc. (GMCR)
Cancel and replace your good till canceled stop loss of 94.64
New stop loss price: 105.4
Cancel and replace your old profit target at 127.33 with a profit target at 126.42
MasterCard Incorporated (MA)
Cancel and replace your good till canceled stop loss of 74.01
New stop loss price: 74.35
Nike, Inc. (NKE)
Cancel and replace your good till canceled stop loss of 65.12
New stop loss price: 74.11
Regeneron Pharmaceuticals, Inc. (REGN)
Cancel and replace your good till canceled stop loss of 247.15
New stop loss price: 278.23
Union Pacific Corporation (UNP)
Cancel and replace your good till canceled stop loss of 188.87
New stop loss price: 194.82
any statistics on this or trial period for this?
Posted by tsurplus on 1st of Jul 2014 at 03:37 pm
Any Stats?
Posted by cuqui69 on 1st of Jul 2014 at 07:35 am
Any Stats?
cuquil69 - you wanted an
Posted by matt on 1st of Jul 2014 at 11:07 am
cuquil69 - you wanted an example, here's an example of what would have been sent out on Sunday to subscribers
New Trades
Existing Trades
Outstanding Trades
The Boeing Company:
Western Digital Corporation (WDC)
New Trades
New Trade #1:
New Trade #2:
Existing Trades
Caterpillar Inc. (CAT)
The Walt Disney Company (DIS)
Netflix, Inc. (NFLX)
Starbucks Corporation (SBUX)
Consider using diagonal 2 x 2 bull call spreads
Posted by cmunny on 8th of Jun 2014 at 02:36 am
1) It's nice to have something a little more concrete in terms of trade setups. I assume this might be a precursor to something you'd put through dittotrade at some point.
2) That being said, These types of trades look like textbook bull call spreads, buying a 90 delta in the money 2-3 months out, and selling a 10-15 delta out of the money in the short month to offset the time decay of your ITM call, then repeating the sale of an OTM call. It gives an element of the covered call.
This is much preferable for risk management instead of the huge stop losses you're looking at in these trades. The SBUX trade, for instance, looks like a bit of a head scratcher, entry at 73 plus, exit at 60 or 86, which is an initial 1:1 r/r ...
Ties up 90% less capital, too, if all
one is going to do is swing trade these for a few weeks. Even
if one wants to book profits in the stock for the long-term, that
can be done, albeit at the exit price, not the entry price.
For instance, a 2x2 diagonal for SBUX, using the long AUG 67.5 ($8.30) and short Jul 80 (25c credit) would only cost you about $8.05 (vs 13 pt max loss in your example). The great advantage is the built-in stop loss of only the value of the long call, but one tends to do even better than that recapturing time value if the underlying slide to the ATM strike well before the expiry date.
Most trades fail because of lack of execution and placement of sell orders. Options intrinsically take care of much of that. I suppose Dittotrade would, too, but the options route would be more risk averse and is the direction a lot of people are heading.
Or you could use a risk reversal approach
Posted by a_l_ on 8th of Jun 2014 at 08:52 pm
Yes the system gives wide
Posted by matt on 8th of Jun 2014 at 01:44 pm
Yes the system gives wide stops at first, however these quickly move up and we also adjust these and many times move them up ourselves against the system. Sometimes we are wrong and move the stop too tight, but we think it's best to monitor the systems trades look at a charts and see if they make sense. Are the profit targets reasonable or not, we may move them down if we don't feel they can be hit. Are the stops logical. Also many times we won't take a system trade, for example if a stock was up too many days in a row and the system wants to buy, we won't take it.
Yes you can trade options of course - we'll leave that up to you for those who are proficient in options.
Yes this could be done through Ditto Trade, however we don't have any plans for that at first, however if the interest is high enough we will add it.
Matt, I think this service
Posted by rikkwan on 8th of Jun 2014 at 06:12 pm
Matt, I think this service would be perfect for Ditto Trade considering the number of securities involved and the # of moving parts, more so than the SPY system in my opinion.
Yes - we've thought of
Posted by matt on 9th of Jun 2014 at 12:39 am
Yes - we've thought of that and may bring that down the road sometime after the launch
What's a profit/loss ratio for
Posted by junkie on 8th of Jun 2014 at 02:06 pm
What's a profit/loss ratio for the system based upon which trades are to be run? Are trades going to be based on the BTP MA Deluxe or another indicator?
I'd like to know this
Posted by jsliedre on 1st of Jul 2014 at 03:44 pm
I'd like to know this as well
SBUX corrected options chains
Posted by cmunny on 8th of Jun 2014 at 02:53 am
Last post had a hiccup