Saturday, December 03, 2022

Current trades update and more potential setups

In this recent post I mentioned a couple of potential set ups I was watching as well as including the charts highlighting some recently taken trades. Here is an update, plus a few more setups which I've added to my watchlist.

This German stock has continued to trend nicely in my favour. as things stand my current trailing stop is about +2.5R above my entry, and current price is just over +5.25R above the entry level:

This UK stock has pulled back following a couple of strong days. Based on my rules, the 10 day low denoting my stop (the thin red line) will be moved up a lot closer to the current price early next week:

This German stock has moved up from entry and is currently at around +1.2R above the entry level. You will that the 10 day low in this chart is still well below my entry. Therefore, my breakout stop is currently in use, and will remain so until to the 10 day low overtakes that point and becomes the trailing stop:

Cable has continued to move up and closed near the highs for the week. Price is now just over +1.8R above my entry:

Other than monitoring and updating the stops on these positions once a day, there has been nothing to do - I just let price do its thing. 

I will only do something extra if there is a massive one day move and the distance between the current price and my trailing stop increases in multiples of R - if that happens I will, for risk management purposes, close a portion of my position. This is what I've referred to in previous posts as the Uniform Risk Exit.

With the potential set ups I mentioned on the last post (PROG Holding Inc., Medical Properties Trust Inc.), price got up to the breakout levels and has meandered around there for a few days. 

These are not a clean breakouts - my ideal scenario on a trade is for price to clearly breakout from the entry level and, while it may retest the breakout, price doesn't fall below that level. If that happens then to me there is a chance that price could fall all the way towards the 20 day low. This was the basic idea behind the breakout stop I now employ - the idea for this came from David Ryan's Market Wizards interview.

Here is the chart for Medical Properties Trust. You can see the breakout failure which meant I was stopped out the session after I took the entry. If you look at my performance history, the vast majority of my losing trades look like this:

Finally, in terms of new potential setups, here are just three of those I am watching. 
In these cases, again there is nothing new or different - I just keep looking for the same basic setups. Rinse and repeat...


  1. Good morning sir. When will you exit the trade?

    1. Eckert & Ziegler AG gapped down unexpectedly gapped down on 06 December. I was stopped out for a profit on the market open that day. As mentioned above, the trailing stop on AO World was moved up and was hit on 07 December, locking another small profit. With TeamViewer AG, again the trailing stop was able to be pulled up closer to price, and exit was triggered on 19 December. A similar story also on GBP/USD, where the stop was hit on 20 December. With the other three potential setups mentioned, none of them triggered an entry, and price has moved to break the 20 day lows on all of them. All of them therefore demonstrated what I discussed in the blog post "A Typical Example of a Losing Trade Cut Short". Hope this helps.