Thursday, 24 July 2008

Russell 2000 Position Closed on Technical Stop

Just got stopped out of my Russell 2000 long position as the market broke down off the open. I recently started using a new, improved trading setup for this market, which is now in cash. (See my latest signals page table for more details.) So I waited for a technical exit point in order to sell the long position. Because of the recent ramp-up, I used a trailing volatility stop set a little below the 20-period moving average on the 15-minute chart. (The specific stop I used was the average minus the recent largest Average True Range minus an extra "notch" on the ATR chart, which came out to $50.14 for the UWM ProShares Russell 2000 Fund.) Good luck the rest of this week.

TAGS: Russell 2000, ProShares, COT, Commitments of Traders, market timing, trading system development, CFTC, Commodity Futures Trading Commission, COTs Timer


Anonymous said...

Hi Alex,

Nat Gas down again after inventory numbers and just broke the stop :(
Took a beating... looks to be mimic of last year's chart.


Alex Roslin said...

Arrgh. Thanks, Pete. I just wrote a post on that.

Best of luck to us all!