I might have dropped the ball on typing an update for my weekend trend trading system last week. On the other hand, that is exactly what helped me realize how well this system fits my current lifestyle.
I’m busy. I work a lot. It’s hard for me to keep up with a system or routine that requires too much time. Nick Radge’s Weekend Trend Trader System was designed for people with my lifestyle, and it really fits what I am looking to do with a trading system.
The Change I Made This Week
One aspect of the system that I was struggling with was tracking the high of each stock since my entry and basing a stop loss off of that high. It hit me on Monday evening that an easier method with a similar result would be to simply use the 20-Week high, which I was already calculating for my entry points.
Since the system only enters stocks that are already at 20 week highs, the 20 week high will be the same as the high since my entry for the first 20 weeks that I hold a position. After that, they might differ, but I’m not sure that the difference will be substantial.
Once I made that change, I noticed that I immediately needed to exit three positions. In the IBD portfolio, LL and NOAH had both fallen more than 40% from their 20 week highs. The same was true for ANR in the S&P Portfolio. I dumped all three stocks at the open Tuesday morning.
Overall Performance To Date
So far, the S&P Portfolio is faring slightly better than the IBD 50 Portfolio. Both are taking big hits due to the transaction costs of trading small acounts. Hopefully, they will prove their abilities to overcome these costs in the long run.
IBD 50 Portfolio
IBD 50 Portfolio
After punching in this week’s IBD 50, I sorted the Rate of Change column from highest to lowest and cust off anything below 30. This is the blue column on the far right. The next thing I did was identify all of the remaining stocks that were trading at 100% or more of their 20 week price channel. These are easy to spot because the second column from the right turns yellow.
Because AKRX, NUS, and JAZZ are already owned, we will exclude them. We are left with ENDP, AMBA, and GNRC as new purchases for Monday morning.
There were quite a few stocks on this list that had an ROC above 30 and were at new 20 week highs. The three that were not already owned were AMZN, YHOO, and ACIW. Since the portfolio already held 20 stocks, we just had room for the one with the highest rate of change, which was AMZN.
The New Week
Since we dumped the three dead weight stocks last week, almost all of the holdings we are left with have plenty of breathing room, so it doesn’t look like we will be forced to sell anything this week. However, I now have the system set up in my office so that I can do a quick scan of the end of day data each evening to see if anything needs to be sold.