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Stock Market Trading Rotation System

Discussion in 'Investing/Trading/Cryptocurrency/Altcoins' started by levijean, Aug 30, 2017.

  1. levijean
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    levijean Bronze Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

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    Shorting stocks [profitably] is a difficult proposition for several reasons:

    The stock market has an upward bias so you have that working against you.
    You have to pay interest & dividends on shorted shares.
    Losses are theoretically unlimited while max gain is only 100%.

    For these reasons I do not participate on the short side.
     
    Last edited: Nov 20, 2018
    Kid likes this.
  2. levijean
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    levijean Bronze Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

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    Lightened up a little more this week. Currently sitting on 50% cash.

    ss.png
     
  3. levijean
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    levijean Bronze Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

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    Lightened up a little more this week. Now sitting on over 60% cash.

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  4. levijean
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    levijean Bronze Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

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    Year end results - I'll call it a win based on the benchmarks.

    Untitled.png
     
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  5. levijean
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    levijean Bronze Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

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    No notably good trades closed out recently. Got out of a handful of positions today that were going nowhere. Currently sitting on 75% cash.
     
  6. levijean
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    levijean Bronze Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

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    Finally closed out a big winner today. I bought this for $5.50 a few months ago for a 65% gain.

    Untitled.png
     
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  7. danray
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    danray New Contributor

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    Rotation system is an interesting variant of trading. Besides, under different conditions, different strategies work better. Usually, trader focuses on the best entry or exit, but rotation system doesn’t depend much on it as I understood. You just choose the best stocks and change them when they stop to be the best. According to your posts, you are doing quite well. Keep going.
     
  8. levijean
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    levijean Bronze Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

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    Closed this one out today for a 33% gain. Bought it last summer around $13.50. I've slowly been increasing my stock exposure the past few weeks but still mostly in cash.

    Untitled.png
     
  9. levijean
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    levijean Bronze Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

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    Closed out this one today at a 35% gain. Bought for $19 last summer. Was up around 80% in October but now its time to move on.

    VRS.png
     
  10. Kevin88660
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    Kevin88660 Bronze Contributor I've Read UNSCRIPTED

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    There are many successful long term trend followers who make a living but I believe it is FAR EASIER to make money from short term mean reversion for the following reason.

    1)Too many CTA firms are long term trend followers and this diminish returns for such strategies. James Simon sums up in an interview that the kind of beautiful trends you get into the 80s are gone and ever since the 90s they focused on mean reversion only.

    2) long term trading is hard because you only realise that the trades do not work out, after a long time. This creates huge opportunity cost for failed long term trend following.

    3)Tail risk for well executed mean reversion strategies are exaggerated by black swans lovers.
    -short term micro-inefficiencies are abundant and unlikely to go away, even in 2008 a lot of long only stratgies are making money than usual.

    -Human discretionary judgement can reduce mean reversion loss easily through simple things like minimizing position size before major news.
     
  11. levijean
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    levijean Bronze Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

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    Got crushed in this position last week during earnings. Closed today for 35% loss.

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