Stocks: 3rd 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: OFF (As at 11 September 2016) No 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

• Nil

Closing Stock Trades

• Nil

It is very early days with this system. So far it has been on just long enough to pick up 4 stocks then turned off. Here is the current spreadsheet.

Weekly Momentum System

System Status: OFF (As at 11 September 2016) No new positions. 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 DMP on Monday's open - 100 day SMA stop

With the system off falling or stagnant stocks are effectively turning the portfolio back to cash. DMP is still in at Friday's close

Equity Chart

I have combined both systems into one chart in order to gauge relative performance. Naturally with the Easy system starting later than the Momo system there is a little lag there but not enough to make it bothersome over the long run.

Further Information

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