Big Bamboo Suits Up to Short Emerging Markets
November 16, 2008 – 9:42 am
Highlighted in a pleasing green hue is the Big Bamboo selection for Monday. I have included some recent studies below, for review.
Big Bamboo, Analysis of Trade Drawdowns
Big Bamboo, Refining Stop Strategies
Big Bamboo: The Esoteric Art of ATR Stops
In light of recent studies, the Big Bamboo will continue to use a 4% stop. However, I have a new study completed which shows the equity curve using 8% stops with 2% risk per trade vs. the 4% stops with 1% risk. It is very interesting. I’ll have it published soon.
As I have some long exposure that I would like to hedge, I will be taking this trade tomorrow.
Wood,
I like this trade, I’m in.
November 16th, 2008 at 12:38 pmCount me in too. Could have used this Friday about 2 p.m. Got caught a bit longer than I’d like to be, which I’m sure a lot of people feel.
November 16th, 2008 at 2:46 pmWood, any thoughts on playing this via front-month options, using a substitute ETF with better options liquidity (maybe EFA?)?
It’s expiration week, and I’m itching for some lotto tickets.
November 16th, 2008 at 6:39 pmWoodshedder:
Any further thoughts on the breakout/bullish post following Thurs. action?
November 16th, 2008 at 7:52 pmFlux, I’ve seen some backtesting that showed that it can be profitable. However, although the results were good, I would say they were inconclusive, due to how hard it is to backtest options. Also, with the recent volatility, spreads may be extraordinarily large.
In principle, it should work though!
November 16th, 2008 at 7:54 pmPinball, I’m working on a post to cover that topic.
November 16th, 2008 at 7:54 pm[...] to re-adjusting the longs is to hedge. And that is exactly I want to do by taking the latest Big Bamboo System pick. My hedge position will be about half the size of my long positions. As the system pick is a [...]
November 16th, 2008 at 9:22 pmIts early, but EFU may break the losing streak!
November 17th, 2008 at 10:20 am