I’ve made a new trade. Woo Hoo! It’s a new trade in Yell at a whopping £4 per point. It quite possibly be the biggest £ per point trade I’ve ever made. So I brought at 10.5p with a stop set at 8p. It’s a support level buy as the lowest low of yell was around 9.8p so a stop at 8p should more than cover it. This gives me a risk of £10 which is within my 1% risk tolerance. When the position starts to move into profit I shall be trailing my stop at 3*ATR(10). The current value is 0.67 so 3*0.67 = 2.01. Obviously this will fluctuate on a daily basis so I will be updating my stop accordingly along the way. What I will be doing is rounding down to the nearest whole 0.5 point for trailing my stop. So If my new stop level should be 9.3 the I will set it at 9p. If it’s 9.8p then 9.5p and so on. I’ve decided to do this as in my super tend strategy I do something similar but I round up or down to the nearest whole number. Because I’m long £4 per point I decided to make the 0.5 number to hopefully lock in more profits along the way.
Other than that not much else has been happening. Most of my open positions are showing some form of profit although some of them have none locked in yet. My best open position is in Northern foods. This is showing a £24 locked in profit which is nearly 5:1 reward to risk. I only wish off the lip had posted his comments earlier on ‘Meaningful position sizing and reducing risk’ and I would’ve been at £2 per point and made £48 instead of £24. Still we live and learn. That’s why I’m £4 per point on yell. I’m making the most of my 1% risk tolerance to make the most reward I possibly can. Hopefully It will work out.
Off the lip don’t worry about the back testing of the new spread betting strategy. There is no rush, whenever you get the time will be fine with us. If there is anything I can do to help you with it let me know and I’ll do my best. That said time is tight as always for me but I’ll do my best to help out.
Ok that’s all from me. I do have one request if anyone has a spare minute or two. Please add a review of your spread betting company. At the moment it’s dominated by reviews from me and it looks a little empty. The more reviews we can get on there the better and you never know it might just help some new to the spread betting world make an informed decision about which company to choose.
Until next time,
“May the markets be with you!”
The Spread Betting Beginner