dgkaufman
23 posts
msg #134407
- Ignore dgkaufman |
2/19/2017 1:14:15 PM
I have been working on a stock trading strategy and could use advice on implementing.
I run the strategy over the weekend and plan to buy the top two stocks with a two week hold period. I would then like to sell those two stocks upon market open on the Monday two weeks down the line and immediately use these funds to purchase the new two stocks that my screener spits out.
Thoughts on a trading platform that would allow all of this to be done simultaneously? My initial thoughts is some sort of margin account.
Currently I trade through Robinhood to avoid paying fees but eventually as my trades get large enough I could transition over to a better broker.
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four
5,087 posts
msg #134411
- Ignore four
modified |
2/19/2017 7:12:51 PM
Welcome to StockFetcher
To your question:
What is each position as a percentage of the starting capital?
What is your allowed drawdown?
When is profit taken?
Will you "hold a position 2 weeks" even if it is down by 15% or more?
Assuming you have a long bias and not short... the market has been on a tear to the upside...A rising tide will lift all boats
~ https://www.bookbrowse.com/expressions/detail/index.cfm/expression_number/478/a-rising-tide-will-lift-all-boats
How does your trading idea act in a down market?
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dgkaufman
23 posts
msg #134419
- Ignore dgkaufman |
2/20/2017 10:45:00 AM
Originally I was thinking about starting with either 10-20k and divide it evenly between the two stocks every time I purchase. Granted I could add more money in a different strategy into stocks in this portfolio so the two don't make up 100% of this account. I could stomach 25% drawdown. I have back tested this through 2014 which is as far back as I could go with it's max drawdown at 17%. Profits will most likely continue to be reinvested until needed. I have back tested the strategy with a 20% stop loss and without and the results we're nearly the same. I believe this strategy should still out perform the market in a down market
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Mactheriverrat
3,153 posts
msg #134420
- Ignore Mactheriverrat
modified |
2/20/2017 12:38:41 PM
@ dg
Just my 2 cents. Might want to paper trade your system for a couple of months. Might save you some $ before you blow up your account. Which is easy to do in the market. I have done twice. Its only in the last year that I have started to dip my toe's back into the market.
Just saying.
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dgkaufman
23 posts
msg #134422
- Ignore dgkaufman |
2/20/2017 4:19:55 PM
@mac, do you have a recommendation for a paper trading site? I know there are a bunch
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mahkoh
1,065 posts
msg #134424
- Ignore mahkoh |
2/20/2017 5:12:41 PM
I'm not a big fan of paper trading, I need some skin in the game in order not to lose interest.
But it would be advisable to start out with small positions and gradually raise the stakes by adding profits (you should also subtract losses..).
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Mactheriverrat
3,153 posts
msg #134427
- Ignore Mactheriverrat
modified |
2/21/2017 12:14:12 AM
http://www.howthemarketworks.com
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graftonian
1,089 posts
msg #134428
- Ignore graftonian |
2/21/2017 9:08:10 AM
I agree with Makoh
"I'm not a big fan of paper trading, I need some skin in the game in order not to lose interest.
But it would be advisable to start out with small positions and gradually raise the stakes by adding profits (you should also subtract losses..). "
The 3 most important rules are" position sizing, position sizing and position sizing
Risk no more than 2%. If one can meet the onerous burden of commissions on small increment trading, it can only get better for them.
IMHO
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