Kevin_in_GA
4,599 posts
msg #112521
- Ignore Kevin_in_GA |
3/30/2013 8:15:54 AM
This is is a valid concern for many systems, especially if they try to buy/sell thinly traded stocks. However, this system only trades S&P 500 stocks so liquidity is not an issue. Also, you are entering a small order using limit entries, which insure that you get that price. Example - does anyone think that the current limit order for 6 shares of GOOG is likely to cause any issues? Probably not, since it traded over 2 million shares last session.
These stocks all trade greater than $10-20 M dollars each day, so a $5,000 limit order is unlikely to soak up all the supply. GOOG actually traded $1.8 B in total dollars on Thursday. Also, I only have three subscribers (4 if you count me as well, since I am trading this using the same signals in my account) so not much change of getting crowded out.
This is actually one of the reasons I really like this system - you will get your orders at the target price without making a ripple, and there is always a buyer when you decide to sell.
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LJLMO05
5 posts
msg #112522
- Ignore LJLMO05 |
3/30/2013 8:20:43 AM
Kevin,
What is the expected move for these stock picks? I.e. do you look for at least 1-2 point move ?
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Kevin_in_GA
4,599 posts
msg #112523
- Ignore Kevin_in_GA |
3/30/2013 8:58:33 AM
No - the exit is not tied to any specific point or percentage move. Both entry and exit rules are proprietary.
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duke56468
683 posts
msg #112524
- Ignore duke56468
modified |
3/30/2013 11:57:10 AM
Kevin did you change your mind about the price point being 19.95/mo? The website says $50/mo,or am I looking at the wrong thing?
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Kevin_in_GA
4,599 posts
msg #112525
- Ignore Kevin_in_GA |
3/30/2013 12:22:16 PM
Yes and no - my original thought was around $20/month. Looking at the average pricing on Collective2 (typically at or above $100/month) made me rethink this - there are systems there that charge a lot more than that even, and Collective2's guidance to sellers is to start at $100/month. That seemed too high to me, so I just cut it in half.
As a seller I'm sure there's an optimum but my general approach is to be lower than most, but not so low that it seems less valuable to traders.
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ZeroSum
33 posts
msg #112530
- Ignore ZeroSum |
3/30/2013 10:08:34 PM
Kevin, look at a couple of other places for ideas: Portfolio123 had strategies available at around $20-$50 each, and also check out sumgrowth.com.
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ZeroSum
33 posts
msg #112531
- Ignore ZeroSum
modified |
3/30/2013 10:25:48 PM
Kevin,
I read the brief outline of your system that you posted. I want to caution you against something that I feel will limit the duration of a typical subscriber as well as limit the attractiveness to higher-account-size subs (the subs with $10k in their accounts who are trying to double it in 6 months will blow their account out anyway, thank goodness for them because they feed your and my account!): your system has no stop losses. That's an immediate non-option for anyone with a sizable account who has to put to work $100k per position or so to move the needle. And these are the types of subs that stay with you for years. Figure out a way to incorporate a stop loss and I think your system will be far more attractive.
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Kevin_in_GA
4,599 posts
msg #112532
- Ignore Kevin_in_GA
modified |
3/30/2013 11:11:20 PM
Probably true, but people get pissed when stop losses get hit (look at the new version of the Connors system I posted and people's take on it is that it is no better, perhaps worse because a bunch of stops were hit right out of the gate).
The system is what it is - I'm not one to change it for my benefit at the expense of those who would subscribe. I would rather give people a good system than one that makes them feel good.
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four
5,087 posts
msg #112535
- Ignore four
modified |
3/31/2013 12:54:41 AM
http://first4trading.com/wp-content/library/guides/Advantage_of_Trading_Systems.pdf
Perhaps, trade (two or more) systems and keep 20% cash (more or less) on reserve... many combinations are possible.
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duke56468
683 posts
msg #112544
- Ignore duke56468 |
3/31/2013 6:30:20 PM
Kevin.. Do you have to get registered or certified as a financial adviser when you charge for a financial service?
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