Big Bamboo Signals Multiple Entries
October 13, 2008 – 5:39 pm
Previously known as The New ETF System, the Big Bamboo has signaled entries across a wide spectrum of diETFs.
The two diETFs the system will take are [[QID]] and [[SDS]] , as those have the most volume of the list of signals.
Here is the rest of the list:
[[SKF]] [[DUG]] [[DXD]] [[TWM]] [[SRS]] [[SMN]] [[MZZ]] [[EFU]] [[RSW]] [[REW]]
Exit signal will activate when RSI2 closes above 80.
I will change the category heading of *New ETF Trading System to reflect the new name of the system. I believe it was Anton Cigur that suggested the name. If the system loses tomorrow, it is his fault.
To read more about this system and its statistics, check out the *Big Bamboo category.
What kind of stop are you going to use with these entries? These are gonna get shafted if we have a follow through day.
October 13th, 2008 at 6:22 pmThanks for the update. So today is a one day wonder? Any thoughts on the probable follow through tomorrow?
October 13th, 2008 at 6:30 pmI’ll hold SRS, but I think you are asking for a ball candling on the rest, Wood.
________
October 13th, 2008 at 6:35 pmWood, that could be a nut chopper. Are you saying buy at the open? With a stops or sell when RSI hits 80?
October 13th, 2008 at 6:42 pmI toast you and repudiate you, in the same breath, for the “shout out.”
October 13th, 2008 at 7:14 pmYeah, I know, it all looks like it could be painful. I’m expecting some follow through tomorrow.
I encourage you folks that aren’t up on the system to read through the archives, but I’ll help anyway I can in the comments section.
Stop is 4%. If stop is not hit, exit triggers when RSI2 closes above 80. However, if you check the archives, then you’ll note that a 6% stop has also performed very well. The extreme volatility of late may find a 6% stop to work better. Also note that if you choose to use a 6% stop, then you will want to take the first 3 ETFs, by volume, so you’d also be picking up shares of SKF.
Buy at open. If you have a professional order entry platform (not Scottrade) then you can make your stop set automatically at 4% beneath your actual entry price.
What would be ideal would be a big gap up to buy these diETFs into. Then a stop set 4% above the entry.
One last note, at the 4% stop level, the last 8 trades have been winners. Would it be surprising for it to hit a couple of losers? Nope. But that is the nature of system trading. Gotta take the signals anyway.
October 13th, 2008 at 7:20 pmhoping for the gap up and then POW lay into them
October 13th, 2008 at 8:34 pmHowdy, me too. Should we get that, I may take these signals tomorrow, with small position sizes and the 6% stop.
October 13th, 2008 at 8:42 pmThanks Shed it’s likely I’ll be joining you in some QID.
If you keep posting these signals, my personal Big Bamboo trade will probably be to alternate between QLD and QID.
October 13th, 2008 at 9:29 pmBoca, now you’re thinking!
October 13th, 2008 at 9:45 pmIt was the only way I could think of to make the volatility and price swings work for me. We’ll see how it works.
October 13th, 2008 at 9:50 pmBoca, I should be clear, you’ll not be getting any signals from this system on the QLD for quite some time.
So even though it may exit the QID, it doesn’t necessarily mean it is time to enter the QLD.
October 13th, 2008 at 9:59 pmYep I understand Shed.
October 13th, 2008 at 10:31 pmI’m taking a small position in QID this morning, with a stop based on 1.5X ATR(10). This will mean my stop will be 13.50 beneath whatever entry I get.
October 14th, 2008 at 9:25 amHi Wood, Thanks for another great entry signal! I assume you decided to change the stop type because of the extreme volatility lately? Why did you choose 1.5X ATR(10)?
October 14th, 2008 at 10:43 amYes Michael, exactly. When and if I decide to trade the system “by the book” then I will follow a clear set of rules that will be outlined here, assuming there is any variation from the rules I’ve already published.
The ATR stop keeps positions small, which is what I wanted, as I knew the position was likely to face headwinds.
October 14th, 2008 at 10:54 amAs for 1.5X, 1*ATR means that the stop would be within range of the average daily movement. In effect, noise could take me out of the position. I don’t want noise to take me out, I want to get taken out because I’m wrong.
October 14th, 2008 at 10:56 amWas filled on QID at 58.59
October 14th, 2008 at 11:08 amI see, that definitely makes sense - thanks!
October 14th, 2008 at 11:24 amI’m missing something. Why is QID down if NAS is down?
October 14th, 2008 at 11:35 amYAHOO acting up
October 14th, 2008 at 11:50 amimpressive signal wood, in this vol i’m impressed. Do you post your sell signal or we have to actually do some work here?
October 14th, 2008 at 4:04 pmdoesn’t get much better than that
October 14th, 2008 at 4:07 pmLol…a nice day for sure, for the Big Bamboo! {High fives all around}
Howdy, I will post the sell signal, but it is very simple to follow.
With my personal shares, I’m thinking of over-riding the system, but I’ll write my thoughts and rationale this evening, sometime after 9:00 est.
October 14th, 2008 at 4:14 pmgreat job Woody.
October 14th, 2008 at 4:35 pm