Position Drill

[scifos]

Close HD @ market (41.06) Due to BB width peaked and STO (20,1) about to cross keltier channel.

[spikefader]

Spike,
If in real world you would have bailed in the Pre-Market then by all means your position is closed. I can do that. So great job Spike with your capital protection and you are now 100% in cash.

Well, that's a fair question. I didn't stipulate it did I. In real life I do use premarket & AH limit orders to both take profit or stop out. I think yer nuts if ya don't. Sometimes pre and AH stops will save you from a nasty gap down, and AH target orders can reward with surprise. Not using them is losing an edge I think.

But in real world there may not have been enough shares traded premarket to exit the position entirely. (I note intraday today it's filled the order now, so I feel more comfortable about it).

You probably should set a definate rule though about limit orders being active pre and AH though, and perhaps we should all stipulate whether our orders are active pre and AH. This is no doubt going to be a long thread over many months, and we're bound to see some AH action.

But thanks for the flat postioning anyway

[Runner]

Spike, I did not give the Pre-m or A/H any consideration and I thank you for bringing it up. I think it is best if people specify if they want the order(s) active in the Pre or A/H. I’ll try my best to keep up with it, but I’m human and will make mistakes. We all know that under certain conditions gap fills would not fill at specified price but we really have no way of figuring that out. I’ll just use the submitted order price for simplicity.

Now thus far we have only two stocks HD and C. I would like for others to submit a few more and raise the total number to 5. This I feel will provide a better opportunity and thus allow this drill to be more useful as a teaching tool..

[Runner]

SCOFIS:

[Runner]

Close HD @ market (41.06) Due to BB width peaked and STO (20,1) about to cross keltier channel.

Sorry Scifos I missed your post yesterday.

[Runner]

Stop @ 39.51

[Runner]

C- update

[Runner]

Well based on Scifos’s port I think he might be using a equal units model. He took his 500K and put almost ½ on the line with a risk of 35K. This 35K would be his total risk if he continued to use the 7% stop as the most amount of drawl down. Current position of 5006 shares would give a 13,916.68 drawl down. He could have about 2.5 drawdowns before he would reach his 35K limit.

I also have reason the believe Spike is following the same model. He has broken down the 500K into 5 units or about 100K per unit.

I will discuss 3 different position-sizing models and the 5-½ year results using the 3 models. The results of these three models will open some eyes.

Ok, not sure if my intent is understood about this topic off POSITION SIZING and so here is some info you can read and maybe one person might get it. This topic is deep and If you think it might be an important part of your trading system your 100% right IMHO.

http://tradermike.net/2005/07/position_sizing

The Drill will close out and you can read the links here and gather the info you might need