Archives: exit

Exit Strategies and MACD at MoneyShow Las Vegas Workshops

April 9, 2010 | By jackieannpatterson | No Comments | Filed in: Classes.

Please join me at the Las Vegas Money Show, Tuesday May 11, 2010. You can learn the past performance of key buy/sell strategies in my two sessions:  07:45 AM – 08:30 AM   Exit Strategies for Active Investors Here we focus on SELL strategies including stop losses, profit targets, MACD negative divergences and more.  I’ll present highlights from the • Read More »

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MACD Sell Signals

May 26, 2009 | By jackieannpatterson | No Comments | Filed in: MACD, Reports.

If you’ve ever wondered: which MACD sell signal has the best track record whether to sell when the MACD Histogram ticks down or wait for the lines to cross how far positions have dropped after a MACD by signal whether stop losses really reduce risk whether using an ATR stop is worth the effort then you might considering investing • Read More »

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BackTesting Moving Averages

March 9, 2009 | By jackieannpatterson | 7 Comments | Filed in: Backtesting Set Up, Moving Average, Reports, Technical Strategies.

Why Moving Averages As a trader or investor, the only reason to investigate moving averages is to gain knowledge to increase profits. Like many other technical indicators, moving averages are meant to help us objectively tell the market status at any given time. This helps us see through the emotions of the day and make • Read More »

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Adverse Excursion Definition

November 10, 2008 | By jackieannpatterson | No Comments | Filed in: Glossary.

An Adverse Excursion is the amount that a trade goes in the wrong direction after entry and before exit.   The Maximum Adverse Excursion (MAE) is the worst over the life of the trade. For example, say a stock is bought at $30, then drops to $28 before rising to $38 then settling back to an exit at $35.   The • Read More »

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ATR Trailing Stop Definition

November 10, 2008 | By jackieannpatterson | No Comments | Filed in: Glossary.

The ATR Trailing Stop is one way to limit losses and protect profits. A stop loss order is set a multiple of the Average True Range (ATR) away from the current stock price. As the price moves in the trade’s favor, the stop rachets along with, always calculated from a better closing prices and never from worse • Read More »

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Dollar Trailing Stop Definition

October 29, 2008 | By jackieannpatterson | No Comments | Filed in: Glossary.

The Dollar Trailing Stop is one way to limit losses and protect profits. A stop loss order is set a given dollar amount away from the current stock price per share. As the price moves in the trade’s favor, the stop rachets along with, never giving ground once its protected by the stop. For example, after buying long, • Read More »

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Exit Strategy Definition

October 29, 2008 | By jackieannpatterson | No Comments | Filed in: Glossary.

 The Exit Strategy is a well-defined plan specifying the conditions to get out of a trade.    For a long trade, exiting means selling the stock. For a short trade, exiting means buying a stock. Extra Insight: Having a strategy for exit allows a trader to plan with a cool head rather than getting caught up in the heat of the • Read More »

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Forward-Testing Definition

October 27, 2008 | By jackieannpatterson | No Comments | Filed in: Glossary.

Forward-testing, means trading a strategy live with very small size to see how well the strategy (and the trader!) perform in real life.    Forward-testing is typically done after backtesting to make sure the trading strategy is not the over-optimized result of curve-fitting or data mining.  It also gives a chance to try out the mechanics of entering, tracking and • Read More »

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Market-on-Close Definition

October 23, 2008 | By jackieannpatterson | No Comments | Filed in: Glossary.

A Market on Close (MOC) order is entered before the market closes and the transaction takes place at the day’s closing price.   The US stock exchanges process these orders.  Check with your broker for exact instructions on how to enter them. Extra Insight: Due to using historical end-of-day data, a “this bar at close” order in backtesting behaves similar to a Market-on-Close order because it takes today’s closing price.   A • Read More »

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Naming Convention Definition

October 22, 2008 | By jackieannpatterson | No Comments | Filed in: Glossary.

My trading strategies follow this Naming Convention: [Direction]_Entry_TestPeriod_[Dataset]_Exit where: Direction is either L for buying long or S for selling short.   Direction is optional and if missing defaults to L. Entry indicates the entry strategy used. TestPeriod is the abbreviated years of the test data.   The data runs from May to April.  So 0407 means May • Read More »

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