the swing service I mentioned, what I would do is
basically suggest GTC buy stop limit orders on a handful of
positions, you set these at night or pre market. Again this
is NOT as good as if you can be here during the day and monitor
things like volume where you choose the stocks with the best volume
on breakouts, but it's something you can do by setting orders.
Here's a couple, I set last night
VRSK - Chart Link- was a clean level at 106.6,
so I set a buy stop limit last night at 106.61 - 106.65.
ALDR - Chart Link- I set a buy stop limit last
night at 15.35 - 15.4, and one at 15.60
again doing this you don't know how volume will be, you can get
filled and the volume ends up being crap on the stock. It's
just a risk you take. I would then typically set stops near
the 9 EMA or low of day.
again point is, it's not rocket science, you look at a trade
idea and see where the resistance is, you place a buy stop limit
order say 1 penny over resistance and the limit is to prent you
filling on a big gap up, that's it. You have a stock with a
resistance at $40, you set a buy stop limit at say 40.01 for the
stop and 40.05 for the limit and that's it. No rocket science
here. The chance you take of course is that volume could be
light on the stock, other things etc.
Thanks Matt. How do you size your trade if it's a GTC
order (i.e. When you're unsure what day it'll get filled on)?
Do use just use whatever the 9 EMA is at the time of entering
the Buy Stop Limit order as your probable initial stop, combine
with max $risk amount, and size your GTC trade size based on that?
Or do you use a constant $order size or constant #shares when
placing these GTC orders? Thx!
again point is, it's not rocket science, you look at a trade
idea and see where the resistance is, you place a buy stop limit
order say 1 penny over resistance and the limit is to prent you
filling on a big gap up, that's it. You have a stock with a
resistance at $40, you set a buy stop limit at say 40.01 for the
stop and 40.05 for the limit and that's it. No rocket science
here. The chance you take of course is that volume could be
light on the stock, other things etc.
My question had more to do with determining position
sizing, given that the value of the 9 EMA, LOD, or trend line
(for whichever day the order eventually fills on) won't be known
when you place your initial Buy Stop Limit order.
Previously you've talked about taking your maximum risk $$, and
dividing by the spread between your entry price and stop price, to
determine the number of shares to buy.
If you don't know which day the order will fill on (because it's
GTC) and your stop is, say, a descending trend line (meaning your
eventual stop will get lower the more days that elapse before your
trade fills) or the LOD for the day it eventually fills, then how
do you know what your $risk/share will be?
That's why I was asking if you use a constant $order size, or
constant #shares, or something else when determining the order size
for your Buy Stop Limit order.
Posted by jdaswani on 23rd of May 2018 at 10:54 am
Matt, Let me help out if you don'y mind
Position sizes tend to be arbitrary based on risk tolerance. For
argument sake.
You have $50k trading account, Normally it is not wise to exceed
10% of your portfolio. Can change depending on tolerance and
stops.
So you have $5k per idea, Now if you keep your stop at 5% of
entry, Max risk you take is $250 (Assuming NO GAP risk)
$250 loss on 50K is only .50%
Now if you told me, I am ok losing 1K on a trade, than you can
adjust position size up to 4x, while keeping the stop on.
Alway keep an eye on Volume, You don't want to get too large on
a position if it does not trade at least 100k shares a day.
If volume is low, keep position size small too, you don't
want to get larger than 5% of Average Daily Volume. So if it
trades, 50K shares a day, most you take is 2500 shares. Even if
that is below your calculated position size.
since you know where your order is, you pre-determine the # of
shares you buy. It doesn't matter if your fill various by a
few pennies.
yes over time you adjust stops - I tend to adjust stops once a
day at times, it's like a job, look at the open positions at night,
look at the chart, if you see stop can be adjusted, then edit the
active stop order. it's just something you do once a day like
a choir, like 10 - 15 min. I'll discuss more once I get back from
Disney Land, which I'm going later this week with the family, I
have too much active this week go launch any services like that,
which is why I will wait until I get back
Newsletter
Subscribe to our email list for regular free market updates
as well as a chance to get coupons!
Trade Ideas comments
Posted by matt on 21st of May 2018 at 10:41 am
the swing service I mentioned, what I would do is basically suggest GTC buy stop limit orders on a handful of positions, you set these at night or pre market. Again this is NOT as good as if you can be here during the day and monitor things like volume where you choose the stocks with the best volume on breakouts, but it's something you can do by setting orders. Here's a couple, I set last night
VRSK - Chart Link- was a clean level at 106.6, so I set a buy stop limit last night at 106.61 - 106.65.
ALDR - Chart Link- I set a buy stop limit last night at 15.35 - 15.4, and one at 15.60
CTRL - Chart Link- I set a buy stop limit order at 24.5 - 24.55.
again doing this you don't know how volume will be, you can get filled and the volume ends up being crap on the stock. It's just a risk you take. I would then typically set stops near the 9 EMA or low of day.
again point is, it's not rocket science, you look at a trade idea and see where the resistance is, you place a buy stop limit order say 1 penny over resistance and the limit is to prent you filling on a big gap up, that's it. You have a stock with a resistance at $40, you set a buy stop limit at say 40.01 for the stop and 40.05 for the limit and that's it. No rocket science here. The chance you take of course is that volume could be light on the stock, other things etc.
Thanks Matt. How do you
Posted by rojoch on 21st of May 2018 at 12:15 pm
Thanks Matt. How do you size your trade if it's a GTC order (i.e. When you're unsure what day it'll get filled on)? Do use just use whatever the 9 EMA is at the time of entering the Buy Stop Limit order as your probable initial stop, combine with max $risk amount, and size your GTC trade size based on that? Or do you use a constant $order size or constant #shares when placing these GTC orders? Thx!
again point is, it's not
Posted by matt on 21st of May 2018 at 10:52 am
again point is, it's not rocket science, you look at a trade idea and see where the resistance is, you place a buy stop limit order say 1 penny over resistance and the limit is to prent you filling on a big gap up, that's it. You have a stock with a resistance at $40, you set a buy stop limit at say 40.01 for the stop and 40.05 for the limit and that's it. No rocket science here. The chance you take of course is that volume could be light on the stock, other things etc.
My question had more to
Posted by rojoch on 22nd of May 2018 at 11:27 am
My question had more to do with determining position sizing , given that the value of the 9 EMA, LOD, or trend line (for whichever day the order eventually fills on) won't be known when you place your initial Buy Stop Limit order.
Previously you've talked about taking your maximum risk $$, and dividing by the spread between your entry price and stop price, to determine the number of shares to buy.
If you don't know which day the order will fill on (because it's GTC) and your stop is, say, a descending trend line (meaning your eventual stop will get lower the more days that elapse before your trade fills) or the LOD for the day it eventually fills, then how do you know what your $risk/share will be?
That's why I was asking if you use a constant $order size, or constant #shares, or something else when determining the order size for your Buy Stop Limit order.
Make sense?
Matt, Let me help out
Posted by jdaswani on 23rd of May 2018 at 10:54 am
Matt, Let me help out if you don'y mind
Position sizes tend to be arbitrary based on risk tolerance. For argument sake.
You have $50k trading account, Normally it is not wise to exceed 10% of your portfolio. Can change depending on tolerance and stops.
So you have $5k per idea, Now if you keep your stop at 5% of entry, Max risk you take is $250 (Assuming NO GAP risk)
$250 loss on 50K is only .50%
Now if you told me, I am ok losing 1K on a trade, than you can adjust position size up to 4x, while keeping the stop on.
Alway keep an eye on Volume, You don't want to get too large on a position if it does not trade at least 100k shares a day. If volume is low, keep position size small too, you don't want to get larger than 5% of Average Daily Volume. So if it trades, 50K shares a day, most you take is 2500 shares. Even if that is below your calculated position size.
thx for the additional comments
Posted by matt on 23rd of May 2018 at 11:58 am
thx for the additional comments
since you know where your
Posted by matt on 22nd of May 2018 at 11:32 am
since you know where your order is, you pre-determine the # of shares you buy. It doesn't matter if your fill various by a few pennies.
yes over time you adjust stops - I tend to adjust stops once a day at times, it's like a job, look at the open positions at night, look at the chart, if you see stop can be adjusted, then edit the active stop order. it's just something you do once a day like a choir, like 10 - 15 min. I'll discuss more once I get back from Disney Land, which I'm going later this week with the family, I have too much active this week go launch any services like that, which is why I will wait until I get back