JSE Power Hour Lazy Trading Simon Brown JustOneLap.com SimonBrown.co.za @SimonPB 30th May 2013

Disclaimer The information and opinions stated in this presentation/document/video/webinar are of a general nature, have been prepared solely for information purposes and do not constitute any advice or recommendation to conclude any transaction or enter into any agreement. It is strongly recommended that every recipient seek appropriate professional advice before acting on any information contained herein. Whilst every care has been taken in preparing this document, no representation, warranty or undertaking, express or implied, is given as to the accuracy or completeness of the information or representations. All information contained herein is subject to change after publication at any time without notice. The past performance of any investment product is not an indication of future performance.

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What Simple & lazy Trade with primary trend Weekly chart INDICES only No gearing No shorting Exchange Traded Funds (ETFs)

What Indices only (using ETFs) Indi25 - STXIND Fini15 - STXFIN Resi10 - STXRES MidCap - RMBMID No STT on ETFs

What Small number of signals Trades can run for years Struggles in sideways market

How Find primary index trend Only trade in this direction After pull back against trend (secondary trend), enter when back in primary trend Confirm week after trigger

Trends Primary trend Exponential moving average relative to each other 30 and 60 WEEK 30 > 60 = up (long only) 30 < 60 = down (no trade)

Trends Secondary trend Exponential moving average relative to price 15 week Price up through 15 = buy If primary confirming

Process Is primary trend is up; Wait for price to cross up through 15 week EMA = trigger Confirmation = next week IF green close for week I enter at 4.30pm on Friday

Exit Only exit on stop loss on weekly close Close below 15 week EMA OR Less aggressive (I use) Close below 30 week EMA

Indi example Primary trend = UP

Resi example Primary trend = DOWN

Position size Use 1% rule Video at http://jol.to/?4J Buy at 4180c Stop at 4026c Risk per share = 154c Quantity = 154c divided by 1% of portfolio Rand value

Position size R100,000 portfolio Buy at 4180c Stop at 4026c Risk per share = 154c 1% = R1,000 Quantity = R1,000 / 154c = 649 (cost R27,128.20)

Indi Trades

Indi example Primary trend = UP

Indi Trade R100,000 portfolio Buy 649 at 4180c (SL 4026c) Bid Thur 30th (11am) 4725c Profit = 545c (13.0%) Stop loss now 4203c (42,030)

Fini Trades

Fini Trade Primary trend = UP

Fini Trade R100,000 portfolio Buy 2,500 at 1140c (SL 1100c) Bid Thur 30th (11am) 1188c Profit = 48c (4.2%) Stop loss now 1122c (11,218)

MidCap Trades

MidCap Trade Primary trend = UP

MidCap Trade R100,000 portfolio Buy 6,667 at 558c (SL 543c) Bid Thur 30th (11am) 556c Loss = 2c (0.4%) Stop loss now 547c (54,724)

Resi Trades

Risks Sideways market Stop can be large (1% rule)

Re-cap Simple (5 minutes a week) 3 moving averages Monitor weekly Few trades Sideways market bleeds Ideal portfolio size > R50k

Finally Not advice Test it Video - How to test a system http://jol.to/?5L

? @SimonPB Facebook.com/JustOneLap info@justonelap.com @JustOneLap

Disclaimer The information and opinions stated in this presentation/document/video/webinar are of a general nature, have been prepared solely for information purposes and do not constitute any advice or recommendation to conclude any transaction or enter into any agreement. It is strongly recommended that every recipient seek appropriate professional advice before acting on any information contained herein. Whilst every care has been taken in preparing this document, no representation, warranty or undertaking, express or implied, is given as to the accuracy or completeness of the information or representations. All information contained herein is subject to change after publication at any time without notice. The past performance of any investment product is not an indication of future performance.

Creative Commons Licence http://creativecommons.org/licenses/by-nc-nd/3.0/

JSE Power Hour Lazy Trading Simon Brown JustOneLap.com SimonBrown.co.za @SimonPB 30th May 2013