QG Fund Update: Hold Your Ground

hold your ground

hold your groundThis was the type of week that makes you question whether you really have what it takes to trade successfully. To my credit, I am taking these losses in stride and maintaining focus on developing my strategy. However, I’d be lying if I didn’t say how disappointed I am. It’s no fun to start out the year in a rut like this.

With that said, the most important thing for me to remember is to stick with the system that I created. Successful trading requires a person to stand tough through the rough patches. If this was easy, everyone would be doing it.

For that reason, here is what happened this past week and what I make of it:

Overall Performance

There’s no nice way to put it. The fund had a really bad week.

Out of the original $100,000 the fund started with, it is down to $96,302.86. That represents a total loss of 3.70%.

The end of this past week saw pretty much all of the stocks in the fund’s portfolio take major hits.┬áNot exactly the way we wanted to start this thing off.

Stocks Leaving the Fund

There were quite a few exit signals that popped up following Friday’s action. LVS, MDCO, and YNDX all fell below their 8% initial stops. On top of that, YNDX, WYNN, WDR, PRGO, and ALGN all fell below their 3ATR stops.

With this many positions falling below their 3ATR stops, I am wondering if perhaps I set the stop too tight. I am going to leave it alone for now, since we are just getting started with this strategy, but that may be something I revisit and adjust later.

Stocks Entering the Fund

With the amount of damage that occurred in growth stocks this past week, I didn’t expect there to be very many, if any, stocks that showed up when I ran the screen on this weekend’s IBD 50. To my surprise, there were four stocks that made the cut: SYNA, MANH, GMED, and BIIB.

With all of the exits that happened on Friday, there was no need to rank these four entry signals. The fund already owns BIIB, so we’ll ignore that one and put in orders to purchase positions in the other three.