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JSE Power Hour Lazy Trading

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Presentation on theme: "JSE Power Hour Lazy Trading"— Presentation transcript:

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

2 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.

3 Creative Commons Licence

4 twitter.com/JustOneLap twitter.com/SimonPB facebook.com/JustOneLap

5 Simon Brown www.JustOneLap.com www.SimonBrown.co.za

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

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

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

9 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

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

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

12 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

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

14 Indi example Primary trend = UP

15 Resi example Primary trend = DOWN

16 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

17 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)

18 Indi Trades

19 Indi example Primary trend = UP

20 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)

21 Fini Trades

22 Fini Trade Primary trend = UP

23 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)

24 MidCap Trades

25 MidCap Trade Primary trend = UP

26 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)

27 Resi Trades

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

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

30 Finally Not advice Test it Video - How to test a system

31 ? @SimonPB Facebook.com/JustOneLap @JustOneLap

32 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.

33 Creative Commons Licence

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


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