Friday, July 16, 2010

ITUB: UPDATE...loser

UPDATE: Stopped out 16-JUL-10 at 20.46 for total loss of $430.50 which was the defined risk I had placed prior to this trade. Trade trigger worked great and I am happy with the execution of the trade...of course this was a breakout and I rather play retests...this is yet another example of why I like doing that...breakouts get faded, retests are nice low risk entry points post breakout fade...

So after my eureka moment. I decided to test the waters using a breakout and using ATR based position sizing.

Based on an ATR (20 period) of $0.70 and my calculated risk tolerance of $430. I determined I could get 615 shares.

Entry point was $21.16

Stop is placed at $20.46

I will use the 2 for 1 method of profit taking here...I will halve the position at $21.86 and leave the current stop in place. This effectively gives me a free trade if I am right....if I get profitable, then I will keep riding this until the exit on %R is apparent (OR should I wait for my trusty 13 day EMA idea to pan out?)...nah I will stick with %R

The setup on ITUB was a breakout on %R and Accel bands confirming close in time. My buddy Shilpi gave me this one so I have him to thank either way.




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