Update: Nov 26, 2013
Signal: Stopped Out (2% loss)
While AAPL did collapse from the algorithm’s initial entry point of $520.51 to a low of $514 (for an unrealized profit of 2.4%) it’s not profit until you book it. A breakeven stop here would have protected against loss, but we decided to let the short run.
Nov 19, 2013
This is an algorithmic trading pattern that was originally used in the subscriber portfolio. It turned out to be quite profitable, however because the algorithm is now short on an up-trending stock (and therefore does not fit within our portfolio risk parameters), we are publishing this signal publicly for anyone who wishes to use this in combination with their own due diligence. We will track the trade performance tracker and it will appear under “Open Positions” for as long as it continues to be in play. Entry price of $520.51 is today’s VWAP as of 2:45 PM.
Full Disclosure: We are a little nervous posting a trade that goes opposite to that of a prominent 70 year old activist shareholder of the stock who is known to destroy any and all adversaries, so we are attaching a relatively tight 2% stop to the position with a trigger price of $530.92. If AAPL closes below $517 this week, expect additional bearish analysis to be posted here forthwith.
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