Stocks: 29th August 2016

Disclaimer - Read this first!

This is not a signal service. While endeavoring to post signals before time occasionally I will only be able to post signals a day or two late

I am not a financial adviser. Some of these are paper trades. I am not suggesting you follow these signals. If you take any action based on my blog you do so at your own risk.

Easy Share Trading System

System Status: ON (As at 15 Aug 2016) Take new positions. Trailing stops are approx 25% of the most recent high. Note - I am starting this system 15th Aug 2016

System details

1. Only trade the Top 300 shares on the ASX and put 10% of your money in each stock.
2. Select stocks priced between 10 cents and 20 dollars,  they go up more quickly than more expensive stocks and yes there are plenty of stocks in that price range in the ASX 300. 
3. Buy the stock if it makes a 1 year high.  For example: today’s price of $2 is the highest the stock has been for a year.  That’s the buy signal. If there is more than one stock that week making a 1 year high, pick the cheapest one.
4. Sell the stock if it at any time  since it's highest recent price it falls more than 25%.  For example: If you buy the stock at $2, and it rises to $4 but then falls 25% to $3, you sell.  This is called the 25% Stop Loss Rule.
5. Now re-employ that money into another stock that is making a 1-year high and use the same rules as 1 to 4.
6. Any purchase ahould have a minimum $500,000 a day turnover for my trading size.
7. Use XAO_AX EMA 20 and EMA 30 as an on off switch. This should smooth the equity curve even though it will probably also reduce returns a little.

Opening Stock Trades

Buy GDI on Monday's open

Closing Stock Trades

Nil

I just kicked this system off two weeks ago so not much to report yet

Weekly Momentum System

System Status: ON - as at 30 May - Portfolio re-balanced monthly, positions checked weekly. Stop Loss either a weekly close below the 100 day SMA on the WEEKLY chart, or, a spike above 7% in the 2 day volatility on the daily chart.

Opening Stock Trades

See Speadsheet

Closing Stock Trades

WEB was closed last Monday

A cluster of stocks have closed below their 100 day moving average or were no longer in the high momentum ranks so first up we need to close the following trades...

1. ACX
2. APO
3. IFN
4. NST
5. OML

This Monday is monthly re-balancing day. Here is the output of the momentum filter.

I have sorted the filter by momentum and I want the portfolio to hold the 15 highest momentum stocks weighted by volatility. So, after dumping anything that has a daily volatility spike in the last 6 weeks, I filled out the following spreadsheet. 8 of the 15 were already in the portfolio from last month so they simply need re weighting. Remember, I am ignoring any purchase or adjustment that doesn't have a transaction value of at least $2,000, With brokerage at $20 a side we don't want to be making tiny buys and sells all the time.

Chart(s) of the day

Nil

Further Information

Disclosure - Personal Interests: CWY, MYR, ALU, APO, CHC, FBU, GUD, MQA, NAN, SDF, SIP, SXL

** EASY system based on Peter Castle's http://EasyShareTradingSystems.com.au site. I can't directly endorse his approach simply because I don't have the facility to back test his methods but, to me at least, they make a lot of sense. The same is true for the Momo system which is based on Andreas Clenow's book. (note: I do not receive any benefit from promoting Peter Castle, Nick Radge, Dave Landry, Andreas F Clenow, Incredible Charts or anything else.)

Stocks: 22nd August 2016

Disclaimer - Read this first!

This is not a signal service. While endeavoring to post signals before time occasionally I will only be able to post signals a day or two late

I am not a financial adviser. Some of these are paper trades. I am not suggesting you follow these signals. If you take any action based on my blog you do so at your own risk.

Easy Share Trading System

System Status: ON (As at 30 May 2016) Take new positions. Trailing stops are approx 25% of the most recent high. Note - I am starting this system 15th Aug 2016

System details

1. Only trade the Top 300 shares on the ASX and put 10% of your money in each stock.
2. Select stocks priced between 10 cents and 20 dollars,  they go up more quickly than more expensive stocks and yes there are plenty of stocks in that price range in the ASX 300. 
3. Buy the stock if it makes a 1 year high.  For example: today’s price of $2 is the highest the stock has been for a year.  That’s the buy signal. If there is more than one stock that week making a 1 year high, pick the cheapest one.
4. Sell the stock if it at any time  since it's highest recent price it falls more than 25%.  For example: If you buy the stock at $2, and it rises to $4 but then falls 25% to $3, you sell.  This is called the 25% Stop Loss Rule.
5. Now re-employ that money into another stock that is making a 1-year high and use the same rules as 1 to 4.
6. Any purchase ahould have a minimum $500,000 a day turnover for my trading size.
7. Use XAO_AX EMA 20 and EMA 30 as an on off switch. This should smooth the equity curve even though it will probably also reduce returns a little.

Opening Stock Trades

Buy CWY on Monday's open

Closing Stock Trades

Nil

Weekly Momentum System

System Status: ON - as at 30 May - Portfolio re-balanced monthly, positions checked weekly. Stop Loss either a weekly close below the 100 day SMA on the WEEKLY chart, or, a spike above 7% in the 2 day volatility on the daily chart.

Opening Stock Trades

Nil

Closing Stock Trades

Sell WEB on Monday's open (Volatility Stop)

Chart(s) of the day

SBM was originaly 17.5% of the portfolio through a combination of high momentum with relatively low volatility. It's now around 11% via subsequent position adjustments and the open profit is 4% of the portfolio.

Further Information

Disclosure - Personal Interests: ALU, CHC, FBU, GUD, MQA, MYR, NAN, SDF, SIP, SXL

All Stock charts courtesy of www.IncredibleCharts.com

** EASY system based on Peter Castle's http://EasyShareTradingSystems.com.au site. I can't directly endorse his approach simply because I don't have the facility to back test his methods but, to me at least, they make a lot of sense. The same is true for the Momo system which is based on Andreas Clenow's book. (note: I do not receive any benefit from promoting Peter Castle, Nick Radge, Dave Landry, Andreas F Clenow, Incredible Charts or anything else.)

Stocks: 15th August 2016

Disclaimer - Read this first!

This is not a signal service. While endeavoring to post signals before time occasionally I will only be able to post signals a day or two late

I am not a financial adviser. These are paper trades. I am not suggesting you follow these signals. If you take any action based on my blog you do so at your own risk.

Weekly Trend Trading (WETT) System

I have decided that there is more value showing a system where I can disclose the rules than continue with the WETT system so from now on I will Use the Easy System shown below.

If you have been following these signals and wish to continue doing so then I would suggest buying Nick Radge's 'Weekend Trend Trading' book. Alternatively, use a 40% trailing stop on open trades and tighten this to 10% if the XAO dips below it's 75 day moving average until the positions wind off.

Easy Share Trading System

System Status: ON (As at 30 May 2016) Take new positions. Trailing stops are approx 25% of the most recent high. Note - I am starting this system 15th Aug 2016

System details

For the past year or so I have been reading Peter Castle's http://EasyShareTradingSystems.com.au site. I can't directly endorse his approach simply because I don't have the facility to back test any of what he talks about but, to me at least, his methods make a lot of sense.

On the page http://easysharetradingsystems.com.au/objective-and-planing/i-know-what-you-want he discloses a weekly system with five rules and very solid returns of around 25% p.a. since 2003. You should read his site for more details and plenty of other good stuff on trading and emotion.

Here are the rules plus I have added rule 6 and 7

1. Only trade the Top 300 shares on the ASX and put 10% of your money in each stock.
2. Select stocks priced between 10 cents and 20 dollars,  they go up more quickly than more expensive stocks and yes there are plenty of stocks in that price range in the ASX 300. 
3. Buy the stock if it makes a 1 year high.  For example: today’s price of $2 is the highest the stock has been for a year.  That’s the buy signal. If there is more than one stock that week making a 1 year high, pick the cheapest one.
4. Sell the stock if it at any time  since it's highest recent price it falls more than 25%.  For example: If you buy the stock at $2, and it rises to $4 but then falls 25% to $3, you sell.  This is called the 25% Stop Loss Rule.
5. Now re-employ that money into another stock that is making a 1-year high and use the same rules as 1 to 4.
6. Any purchase should have a minimum $500,000 a day turnover for my trading size.
7. Use XAO_AX EMA 20 and EMA 30 as an on off switch. This should smooth the equity curve even though it will probably also reduce returns a little.

Entry Method

This is very easy indeed. I have set up a filter on Incredible charts.

This gives the following results which I have sorted by price in ascending order.

I then start at the top of the list and buy the first share that makes a new 50 week high. naturally you do this on the weekend when the system is on and you don't already hold 10 stocks. You also run through your holdings to check for stop losses then set you buy and sell orders for Monday morning. easy Peasy!

I have decided to use a $66,000 portfolio and brokerage of $29.95 a side to test this system.

Opening Stock Trades

Buy MYR on Monday's open

Closing Stock Trades

Nil

Weekly Momentum System

System Status: ON - as at 30 May - Portfolio re-balanced monthly, positions checked weekly. Stop Loss either a weekly close below the 100 day SMA on the WEEKLY chart, or, a spike above 7% in the 2 day volatility on the daily chart.

Opening Stock Trades

Nil

Closing Stock Trades

Nil

RSG was sold last Monday

Chart(s) of the day

Nil

Further Information

Disclosure - Personal Interests: ALU, FBU, MQA, SDF, SIP, SXL

All Stock charts courtesy of www.IncredibleCharts.com

** WETT Trading style is Similar to the methodology described in 'The Weekend Trend Trader' by Nick Radge, Buy his book if you wish to discover how I am generating these signals (note: I do not receive any benefit from promoting Nick Radge, Dave Landry, Andreas F Clenow, Incredible Charts or anything else.)

Stocks: 8th August 2016

Disclaimer - Read this first!

This is not a signal service. While endeavoring to post signals before time occasionally I will only be able to post signals a day or two late

I am not a financial adviser. These are paper trades. I am not suggesting you follow these signals. If you take any action based on my blog you do so at your own risk.

Weekly Trend Trading (WETT) System

System Status: ON (As at 30 May 2016) Take new positions. Existing stops stay as they were - new stops are approx 60% of buy price.

Opening Stock Trades

Nil

Closing Stock Trades

Nil

Weekly Momentum System

System Status: ON - as at 30 May - Portfolio re-balanced monthly, positions checked weekly. Stop Loss either a weekly close below the 100 day SMA on the WEEKLY chart, or, a spike above 7% in the 2 day volatility on the daily chart.

Opening Stock Trades

Nil

Closing Stock Trades

• Sell RSG on Monday's open (Volatility Stop)

These four were closed as part of the monthly re-balancing

Here is the portfolio after last Monday's re-balancing. I have shown position adjustments as extra trades which means I have to add back closing comission because, naturally, I would only use one trade to close the lot.

RSG has managed once again to pop in and out almost immediately. Sometimes this can be frustrating but any rule based system throws up oddities like this so all we can do is follow the rules and remember that it is the sum of all trades that count rather than individual trades.

Chart(s) of the day

Nil

Further Information

Disclosure - Personal Interests: ALU, FBU, MQA, SDF, SIP, SXL

All Stock charts courtesy of www.IncredibleCharts.com

** WETT Trading style is Similar to the methodology described in 'The Weekend Trend Trader' by Nick Radge, Buy his book if you wish to discover how I am generating these signals (note: I do not receive any benefit from promoting Nick Radge, Dave Landry, Andreas F Clenow, Incredible Charts or anything else.)

Stocks: 1st August 2016

Disclaimer - Read this first!

This is not a signal service. While endeavoring to post signals before time occasionally I will only be able to post signals a day or two late

I am not a financial adviser. These are paper trades. I am not suggesting you follow these signals. If you take any action based on my blog you do so at your own risk.

Weekly Trend Trading (WETT) System

System Status: ON (As at 30 May 2016) Take new positions. Existing stops stay as they were - new stops are approx 60% of buy price.

Opening Stock Trades

Nil

Closing Stock Trades

Nil

Performance as at end July 2016

July was fairly quiet in the WETT system, the All Ords rose a bit and so did the portfolio.

Here is the spreadsheet of current positions and a comparison chart to the All Ords.

Weekly Momentum System

System Status: ON - as at 30 May - Portfolio re-balanced monthly, positions checked weekly. Stop Loss either a weekly close below the 100 day SMA on the WEEKLY chart, or, a spike above 7% in the 2 day volatility on the daily chart.

Opening Stock Trades

Nil

Closing Stock Trades

Nil

This Monday is monthly re-balancing day - I run the filter which gives the following output.

This is sorted by momentum and I want the portfolio to hold the 15 highest momentum stocks weighted by volatility. So, after dumping anything that has at a daily volatility spike in the last 6 weeks I fill out the following spreadsheet. 10 of the 15 were allready in the porfolio from last month so they simply need re weighting. BLA, GOR, OGC and ORE will be closed in full. Remember, I am ignoring any purchase or adjustment that doesn't have a transactional value of at least $2,000, With brokerage at $20 a side we don't want to be making tiny buys and sells all the time.

Chart(s) of the day

Nil

Further Information

Disclosure - Personal Interests: ALU and MQA

All Stock charts courtesy of www.IncredibleCharts.com

** WETT Trading style is Similar to the methodology described in 'The Weekend Trend Trader' by Nick Radge, Buy his book if you wish to discover how I am generating these signals (note: I do not receive any benefit from promoting Nick Radge, Dave Landry, Andreas F Clenow, Incredible Charts or anything else.)

Disclaimer - Read this first!

This is not a signal service. While endeavoring to post signals before time occasionally I will only be able to post signals a day or two late

I am not a financial adviser. These are paper trades. I am not suggesting you follow these signals. If you take any action based on my blog you do so at your own risk.

Weekly Trend Trading (WETT) System

System Status: ON (As at 30 May 2016) Take new positions. Existing stops stay as they were - new stops are approx 60% of buy price.

Opening Stock Trades

Nil

Closing Stock Trades

Nil

Weekly Momentum System

System Status: ON - as at 30 May - Portfolio re-balanced monthly, positions checked weekly. Stop Loss either a weekly close below the 100 day SMA on the WEEKLY chart, or, a spike above 7% in the 2 day volatility on the daily chart.

Opening Stock Trades

Nil

Closing Stock Trades

Sell SLK on Mondays open (100 day SMA Stop)

Sell TWE on Mondays open (100 day SMA Stop)

RSG sold last Monday - profit 0.6% of the portfolio.

Chart(s) of the day

Nil

Further Information

Disclosure - Personal Interests: ALU and MQA

All Stock charts courtesy of www.IncredibleCharts.com

** WETT Trading style is Similar to the methodology described in 'The Weekend Trend Trader' by Nick Radge, Buy his book if you wish to discover how I am generating these signals (note: I do not receive any benefit from promoting Nick Radge, Dave Landry, Andreas F Clenow, Incredible Charts or anything else.)