Stocks: 10th October 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 10 OCT 2016) Take new positions. Trailing stops are approx 25% of the most recent high.

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 - theoretical price leverage.
3. Buy the stock if it makes a 1 year high. For example: Friday's close is higher than last Friday's 50 week upper Donchian Channel That's the buy signal. If there is more than one stock that week making a 50 week 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 Daily EMA 20 and Daily 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 SIP on Monday's open

Closing Stock Trades

• Nil

Weekly Momentum System

System Status: ON - as at 10 Oct 2016 - 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

• Buy A2M, MYX, FMG, IPD, HSN, SIP and NXT as per the spreadsheet.
• Adjust SIQ, ALU and TWE as per the spreadsheet.

Closing Stock Trades

• Sell entire BSL position Monday's open - No longer in the top momentum ranks
• Sell entire RRL position Monday's open - 100 day SMA stop
• DMP closed last Monday - 100 day SMA stop

Chart(s) of the day

Nil.

Further Information

Disclosure - Personal Interests: CWY, GDI, MYR, ALU, APO, FBU, GMA, GUD, 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.)