Finally! The Three and Four Sigma Systems both picked the same stock for trading yesterday. The stock didn't rise above the close on Thursday, so it didn't actually put the stock in the portfolio. We give the stock five trading days to trade above the signal day's close to generate the trigger to buy.
Quick side note on how the system works: the trading systems "signal" a stock and then wait for a "trigger" to purchase the stock. In our case, the "trigger" happens the day after the signal day if the stock trades over the signal day's closing price. So, the signal happens the first day and then triggers a buy the next day if it goes up. The system holds the stock for 50 days and then sells it.
Either way, we were all happy to see the system finally begin to signal stocks again as the market appears to have stabilized at least for now. The sigma value of the VIX is dropping which is good news and the sigma value of the market is increasing (from a very negative value) which is good news too. Stay tuned for more signals from the system and, hopefully, triggering some buys.
skip to main |
skip to sidebar
Blog Archive
About Me
- Jim Snyder
- I'm a husband, dad, and commercial insurance broker. I’m the guy in the office you usually look for help you out with any information you can’t find or any computer problem you might have. I specialize in large property placements nationwide, but especially layered policies in coastal areas. Many layered property placements suffer from gaps that you may never know exist. I like to find ‘em. I also like models; catastrophe models, financial models, business models and runway models.
No comments:
Post a Comment