Matt, I really appreciate your step-by-step examples of stop management.

Is the following an accurate summary of this approach?  Just trying to get it straight in my head how this works for us who work another day job and can't be hovering around the screen:

- In the evening, set GTC Buy Stop Limit order just above the breakout level with a Limit just above it (so it doesn't fill if there's a gap).  Use current day's 9 EMA as a potential exit stop when you're calculating your trade size ( # Shares = Max $ risk / (entry price - first exit price) )

- If it doesn't trigger and fill the next day, do nothing

- If it does fill the next day, take a look mid-day(?)to see how it's doing:

a) If it's a solid up-candle (with small wicks), then sell 1/2 of position and move exit stop on remaining half up to somewhere below the midpoint of the up-candle.

b) Otherwise, just leave it for now.

- Each evening, consider moving up your exit stop to whichever of the following is the highest:

a) Today's 9 EMA

b) If today's low is lower than yesterday's low, then move exit stop up to today's low

c) If today had a solid up-candle, then put in  an order to sell half (if you haven't already) and move exit stop on remaining half up to somewhere below the midpoint of today's up-candle.

Lather-Rinse-Repeat each day.

Does this sound like an accurate description of your approach?

Appreciate your patience.

.../john in Victoria, BC

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?

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!

totally agree with oakavekid.  the struggle i've been having is in how to manage the trades once they trigger.  even after-the-fact case studies of how you managed several winning and losing trades would be a huge help

Thx.  You mostly using the 5m chart since you're intra-day?

Focus on the most objective setups (for trades)

To clarify, what would be your top 3 objective setups?  
- Low and High of Doji with divergence?
- Low and High of Hammer with divergence?
- Something else?
Thx.

Is the AAPL system still long?

Thanks mla127--great to see some Canadian trade ideas. Will be interesting to see whether those below the 200d can power up through it.

.../John in Victoria BC

Thanks for the updates Matt.  I definitely vote to keep the systems going.

Have you considered posting a snapshot of the system chart at the end of each trading day (similar to what you do with the BPT MA Deluxe)?

Thanks!

.../john in Victoria, BC

I currently have a stop at the LOD ($5.14).  When you say "giving it a little room", are you thinking of a lower stop, say, 9de ($4.95)?

Given the whippiness of the market, where would be good places for stops if these trigger?

Thanks for the email alert Matt!

.../john

Who here is trading in a Canadian RRSP or RESP?  Looking to find out what approaches fellow Canadians are using (which broker, which trading platform, and how to handle the ever-changing forex rate)

Thanks!

.../John in Victoria, BC

I'm thinking back to the beginning of February when the market started dropping, and a second SPY Pro entry occurred, followed by more downside.  Then I think you mentioned having a stop in place in case things continued to drop.  Previous to that point I had always traded the SPY Pro system with no stops, just waiting for exit signals. 

Now that volatility and choppiness has appeared in the market, I'm more conscious of protecting the downside risk but somehow still allowing for second and third entries lower.

I'll place a safety stop under the bottom trend line and hope that it gives it enough room. 

In today's newsletter, Steve repeatedly urged us to have a stop in place due to the ascending wedge of the SPX.

Where would be a good stop for those of us who entered the SPY Pro this past week?

Thanks!

.../john 

Listening to your newsletter about the recent big pops.  

For fast-moving stocks like these, what type of stops do you prefer?  Market?  or Limit?  (thinking about the effects of gaps and low-liquidity)

Any chance there's a version that works with TC2000?

Trying to figure out a stop for this if it goes back to 6.76... 

6.26 would work if you see it as a double-bottom, with a target of 7.31 but that seems pretty wide (7%)

Or could do yesterday's mid-candle (6.55).

Or could do yesterday's low (6.49).

Or today's low (6.66).

Again, choosing initial stops (and then deciding how/when/where to move them later on) is the part I struggle with the most.

Thoughts?

Sounds like a great feature. Unfortunately iTrade Canada does not appear to offer conditional orders. :-(

Thanks I just used that 10% in one day tip to book 15% gain in MU since buying it a week ago.  Normally I would've held on and risked doing a round-trip.  Thanks again!

.../john