iBankCoin
Joined Nov 11, 2007
1,458 Blog Posts

Big Bamboo Suits Up to Short Emerging Markets

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.

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8 comments

  1. RC

    Wood,

    I like this trade, I’m in.

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  2. B-rad

    Count 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.

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  3. Flux Capacitor

    Wood, 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.

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  4. Pinball Trader

    Woodshedder:

    Any further thoughts on the breakout/bullish post following Thurs. action?

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  5. Woodshedder

    Flux, 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!

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  6. Woodshedder

    Pinball, I’m working on a post to cover that topic.

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  7. Woodshedder

    Its early, but EFU may break the losing streak!

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