Just a brief report today. As you may remember from the roller-coaster of a report also known as the the weekly round up, we were keeping an eye on the symbol UBT.
UBT is the ETF that represents 20 year treasuries on the stock market. We use it as a proxy.
The chart we looked at showed a level of resistance that if we had a close above we would place a stop-buy at a point just above the high of the candle that did the closing.
To the chart, Robin…
If you cast your eye to the chart above, you will see, at position 1, a candle with a large wick (the skinny bit rising above the body of the candle). Just to the left of that you can see a green candle that has closed above our resistance level. Our stop-buy was placed at $135.89, which was just above the green candle.
The wick at 1 had a high of $139.45 which caused our trade to be triggered. Our trailing stop began life at $118.95 which is $16.94 below the trade price. Our trade, risk, etc, looks like this…
$13,000(10% of the portfolio)/$135.89 = 95.665, rounded to 100 shares.
The stop of $16.94 X 100 shares = a risk of $1,694.00 which is <$2,700 (2% of the portfolio).
This trade has adhered to all the elements of our process from the triggering through to risk exposure to the portfolio.
We will now leave the trailing stop to do its work.
That is all for today. If you have any questions or concerns, please drop me a line at: firstname.lastname@example.org.