Registered:
22/05/09
Seen:
5:42am
Followers:
1

Comments
213

Real Name: Andrew

Occupation: Company Director, Private Investor

Interests: Stocks

Fantasy Fund: Defy the market


Investment Strategy
I trade... weekly
I tend to buy... according to my system
I hold for... a few months
I invest with... <£500k
Diversification is ... essential to reduce risk
Momentum, value and quality but above all momentum. Emphasis depends on the season. Heavily influenced by Miniverni, O'Neil and Darvas. If fundamental criteria are met, I buy, ideally as previous resistance (supply) is overcome (if there is any) on new highs. If there isn't resistance (supply) to overcome, then new highs are the criteria (55 day). In essence this is a turtle trader/Darvas box breakout technical strategy. I look to sell when when fundamentals change, or when momentum changes and begins to break down (essentially a draw down from the high determined by 'lower low', trailing stop, absolute stop of high - 15%-20%). Periods of consolidation and a failure to make new highs will result in a tightening of the stop although rarely more than weekly. A breakout followed by a fallback into a consolidation region will give me pause for thought! I accept that I won't call the top, but also accept that shares may pause and need room to breath. I'll also tighten a stop if a 'breakout' fails to manifest. Position size reflects volatility and spread. I tend to ignore shares with spreads above 250 basis points, favour low spreads and ignore 'low volume' shares, by which I mean where my trades will result in a significant price movement; I don't want my trades to be the ones that set the prices and ideally want to be able to enter and exit relatively easily. The higher the spread the lower my position size. As a rule of thumb up to 10% of my portfolio for spreads less than 1% to no more than 2.5% of portfolio for spreads at 4%+ - although the investment case would have to be very strong to consider a 2.5%+ spread. I make use of charts to identify breakouts, support (demand) and resistance (supply) as well as OHLC and candlestick variations.


HumourMe's Latest Blogs

I thought it would be interesting to look at the Woodford holdings and their share price direction, possibly revisiting this later, so this is really a stake in the ground which I'll revisit if my interest is sustained. Will buying opportunities show up? I guess the answer to that is yes, eventually! Information beyond the top 10 in each fund is tricky to get now…

I’m interested in adding a portfolio of value shares to my usual momentum/breakout approach, as value based strategy returns correlate inversely with my usual price momentum (value shares normally get their definition after price falls and momentum is backwards looking). Any screen would also serve, in the event of a market crash, as a quick shortlist of what to put in my basket. I thought…

Edit to "how the screens work", below, clarifying what happens if less than 25 candidates. It is generally considered good practice in statistics/machine learning to split samples into training and test data sets. This is to avoid over-fitting and/or data mining where a result or model derived from one data set has poor performance when applied to out of sample data. Why is this relevant…

I've been holding off speculation as I've been waiting for an 'up week' in the markets as my first condition, based on 'a rising tide lifts all boats'. If you follow the link to wikipedia you'll see that Ed Miliband appended to this "Now the rising tide just seems to lift the yachts". To Identify the yachts we can use screening, but first we need…

QARP = Quality at a reasonable priceCurrently I'm 100% cash delaying re-entry until the tea-leaves indicate that the tide might be rising. For me this will be, at a minimum, when the weekly Heiken Ashi turns green for the various index: In the meantime though, my 'quality value' instincts are beginning to revert, as in precarious markets I perceive plenty of risks (although it is…



HumourMe's Latest Comments

Most mathematicians nowadays believe that infinity plus one is no bigger than infinity.Whenever I've compared them I've not been able to discern a difference.

From Exchange:All GTD orders on partition 1 and 2 have been expired.Instruments on partition 1 and 2 will resume in an opening auction call at 09:20 and will uncross at 09:40. EDSP auction for FTSE100 securities will commence as per today’s standard schedule at 10:10. Users that receive rejection messages, are advised to log out their trading sessions and log back on to the relevant…

Shorting should be outlawed! The perpetrators should be severely punished and their “wealth” used to compensate the losers Predatory shorting, based on a false narrative should be outlawed. So should using accounts to create a false narrative. It is? Probably should be some balance introduced then. Otherwise shorters can help expose dubious practices, encourage positive change and ensure that new investors don't overpay; this surely…

Is there a screen for three line break in investopedia and or the facility to display in the CHARTS.Don't know about investopedia, but presuming you meant here; No. They need Renko charts which aren't supported here (yet?). 

One point I would propose is that as momentum declines at these various companies, 'value' increases, and so the balance of factors supporting the overall StockRank must shift.As I understand it the StockRank is average of the three component ranks, re-ranked. Taking the product of the individual components, prior to re-ranking would produce a different overall ranking, favoring companies which are strong (or average) on…

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