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| Friday, October 19, 2007 |
| 19th October update |
Before I begin, I have tweaked my beta version of my trading system. Some of the distinct changes
1. Each position will be allocated a larger portion of risk as compared to the previous version.
2. Screening process will be and much stringent. This includes The long term trend direction, short term trend direction, momentum of short term trend.
3. Decision to buy based on the price it is in and it is divided into several tiers.
Tier 1: trying to get into position.
Tier 2: trying to buy at short term weakness
Tier 3: trying to bottom fish
Tier 4: using CFD when it has rebounded from long term weakness short term down trend
4. Decision to cut loss is still the same. However, I'm still deciding if the Tier entry should follow the same cut loss degree.
5. Decision to profit take. While trend following still applies, due to larger positions, I could actually stagger profit taking. Tier 2 and Tier 3 could be used for profit taking as these funds are used to bottom fish in the market. From experience, a correction always comes when one gets too carried away with purchasing stocks. Thus, profit taking is important so as to keep more free cash in your portfolio.
6. Decision to exit. Similar to previous version of the trading system, the time to exit will be exhitbited by the EMA. True enough, the loss incurred due to some cost averaging is high, but the risk of not exiting is even higher. Furthermore, there might not be too much loss, as it is cost averaged at tier 3.
Generally, these are the principles for the system and at the moment, I am currently employing this system. I have loaded 3 core equities in pac Andes, FerroChina, AsiaEnv and ChinaAOil. These 4 counters are already loaded in Tier one, with AsiaEnv being loading with the second tier counters. I have still funds to load the 3rd tier of AsiaEnv, 2nd tier of CAO and FerroChina. However, I would also want to wait for opportunities to load on the counters that are battered hard at the moment. Loading a tier 3 for short term is a good idea though.
I will be blogging again soon if I could find the time. Recent activities have taken quite a hit on my portfolio, dropping back to $1.48. Will see it drop down to as low as $1.40.Labels: NenixDreams Fund |
posted by Nenix @ 11:51 PM   |
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| NenixDreams Fund |
| Fund launchprice on 1st August 2006= $1
Target for 2007 = Beat STI index
Current price of NDF as of 1st Oct 2007 = $1.58
Current price of STI as of 1st Oct 2007 = $1.54
Difference with STI index is 0.04
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