November BSI Stock: AWK (NYSE)

November BSI Stock: AWK (NYSE)
Buyer Strength Indicator gave three buy signals for this stock

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Monday, February 28, 2011

The importance of position sizing (Applicable to the Rolling Stone System)

It is possible to apply a simple rule of thumb to open position using this system. We take the condition 1 and 2 and apply them to the 1H chart. Once the conditions are met, we will open a position which we refer to as the “small position” (we will risk 0,5% of our portfolio on this position). Subsequently, if the position goes in our direction and goes above an immediate previous maximum we will increase the size to a 1% of our portfolio.

When the position has moved in our favor to a point where conditions 1 & 2 are met in the 4H chart, we max the size of our position. We will also assign the stop at below the “low 60 period EMA curve” in the 4H chart which should be above the stops for the small position. The idea is that, even if our trade goes against us in the 4H timeframe we will not lose the small positions and still recover some of the loses. We decrease our total risk considerably by doing this.


Position sizing is a key factor to determine the profitability of a portfolio of trades. Position yourself with small positions in potential trends. Once the trend has confirmed in your favor, increase the position to your pre-defined maximum

Thursday, February 24, 2011

Trading like a robot - the key to success

I found this video interesting on how anyone can become successful by being committed to a system.

Tuesday, February 22, 2011

Rolling Stone in practice

I only wanted to share a snapshot of my trading desk for today's rolling stone's trades. I will be posting new entries soon... You can easily check the entries I made by following the system (rolling stone) as described in this blog.


Entries are made as soon as the price breaks the 60EMA either on the low or high side. I am following these pairs as they develop in trends or not. Therefore the stop losses are placed at the breakout on the opposite direction.