Hello and thanks in advance for helping a rookie.
I would like to test a strategy for use on a single stock that would:
A. Enter a long position upon a move of 1.75% above the low since the last action.
B. Exit that position if the stock falls 2.5% off of the high.
Then the cycle starts over again.
To illustrate:
Strategy starts April 1st with the stock at $100. It moves up to $101.75 which would trigger the entry of a long position. The stock continues over the next 10 days to rise to $115 (without correcting more than 2.5% at any time off of the high) and then finally moves down to $112.12 (a 2.5% correction). This would trigger the exit from the position.
As soon as the stock moves back up 1.75% from any new low that was created, the cycle starts again.
Can I do this?
Thanks again for your help.
Pete
I would like to test a strategy for use on a single stock that would:
A. Enter a long position upon a move of 1.75% above the low since the last action.
B. Exit that position if the stock falls 2.5% off of the high.
Then the cycle starts over again.
To illustrate:
Strategy starts April 1st with the stock at $100. It moves up to $101.75 which would trigger the entry of a long position. The stock continues over the next 10 days to rise to $115 (without correcting more than 2.5% at any time off of the high) and then finally moves down to $112.12 (a 2.5% correction). This would trigger the exit from the position.
As soon as the stock moves back up 1.75% from any new low that was created, the cycle starts again.
Can I do this?
Thanks again for your help.
Pete
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