Mike
06-07-2016, 03:32 PM
Early last month I reported on a system that buys stocks with good fundamentals breaking out of a base on at least 100% above average volume. Since the follow-through day on 2/17/16 I have been tracking potential results of using this system. The system buys these stocks and then uses six sell rules as to when to sell them. All selling is done at the end of the day and usually at the end of the week. The rules were documented in a May 2 post titled "5-2-16 Market Open". This type of buying and selling represents long-term holding for perhaps a year or more.
The current post is an update of the performance of this approach. In the spreadsheet below you will see stocks meeting the buy criteria in column A, the breakout (buy) date and volume in columns B and C. Stocks need to show CANSLIM traits and meet minimum liquidity to be included in the study. Column G says which of the six sell rules might have been invoked. Column I shows the profit or loss by the sell action. Column F shows the current or unrealized profit or loss of the remaining active positions. Row 36 shows a cumulative unrealized profit of $14,153.18 assuming that each position size is $10,000. The aggregate loss of $2,484.45 for all stocks sold is indicated for a net gain of $11,668.73. You can see that steady progress is being made and that the losses are contained. I consider this good performance for a choppy directionless market. When everyone turns short term in poor conditions, my reaction is to go longer. You will also see that most of the gains come from a small number of positions and that the poorly performing positions take care of themselves.
36494
The current post is an update of the performance of this approach. In the spreadsheet below you will see stocks meeting the buy criteria in column A, the breakout (buy) date and volume in columns B and C. Stocks need to show CANSLIM traits and meet minimum liquidity to be included in the study. Column G says which of the six sell rules might have been invoked. Column I shows the profit or loss by the sell action. Column F shows the current or unrealized profit or loss of the remaining active positions. Row 36 shows a cumulative unrealized profit of $14,153.18 assuming that each position size is $10,000. The aggregate loss of $2,484.45 for all stocks sold is indicated for a net gain of $11,668.73. You can see that steady progress is being made and that the losses are contained. I consider this good performance for a choppy directionless market. When everyone turns short term in poor conditions, my reaction is to go longer. You will also see that most of the gains come from a small number of positions and that the poorly performing positions take care of themselves.
36494