Bought iShares MSCI Taiwan Index (EWT) – More on the process July 21, 2010
Posted by Marlowe Cassetti in DOG, ECH, EWT, SH.trackback
In yesterday’s blog I expounded on the importance of “the process”. Well today I discovered a flaw in my process. I hadn’t updated my email address for all my trailing stop alerts. Wow, that was a shocker. On the web page where I was setting my alert level for EWT @ $16.45/share I noticed a message that my broker was unable to contact me at the email address I had provided. That was certainly a wakeup call. One must be diligent in all phases of the process for the process to be effective. It is the small things that can bite you.
Another, but related topic, I received an email from a longtime friend who has been following my work. His question had to do with my plans for my two short funds DOG & SH now that RSI was picking long side funds, i.e. EWT. My answer was the following:
All positions will be sold when:
1) -either they fall below their sell stop price
2) -or rise to their profit alert price at which time a trailing stop will be initiated
3) -and if the price were then to fall 30% R below the subsequent high price
This process is based upon testing and doesn’t require me to predict the direction and subsequent course of the markets. However, in the works is 1) – adding to winning positions plus 2) – raising stops after +R gain.
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Sorry about the lost blog with my ISP outage. I need to develop backups, but living in a remote access location I don’t have too many options. And guess what, my broker sent me a message that my trailing stop initiation alert was hit for iShares MSCI Chile Investable Market Index Fund (ECH). I will be initiating the trailing stop as soon as I rectify some of the numbers.
As I reported earlier today I did purchase a position in iShares MSCI Taiwan Index (EWT) yesterday. I got in around the morning opening and it is behaving just fine.
On the system development front, I’m giving up on operation Sow’s Ear. It just isn’t working out. On another project, I have several potential trading modules that requiring a knowledge of day of the week. Some of these modules have origins back to my futures trading days. Anyway, I developed the code to compute DoW. Now my wife wants me to her birth day. She thinks it was Wednesday, but I’ll give my code a test.
No new RSI picks today, catch you later.
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