Hi All Glad traders,
I have changed the starting line up for the varsity Glad team. The following stocks all have a greater then 90% historical win rate:
JPC(New..100% win rate)
That is the 5 man "A" team.
ARR is a red shirt on the same team at 80% win rate
New: I no longer use the 3% Rule. It has changed to a more aggressive approach @ 10 cents. So the way I am trading is, after initial entry(JTP, ARR and JPC on X+2...no Glad entry, the rest starting on X+4 with Glad criteria), I enter a limit buy for more shares @ 10 cents below either the last purchase price, or that night's close, whichever is lower. Remember to do this each day, and never enter a buy at more than what the last purchase price was at. All 10 cent trades conclude on the X-7 day, meaning no order entries that night.
Stops(New): Continue with the old criteria and add the following: If the closing price on X-7 is less than the original purchase price, STOP and sell all purchased shares for the cycle. This reduces all previous losses by over 75% of the loss amount and yet does not significantly impact the runs to EX on the winners.
That is the balanced dance with Stops. You don't want to make them so tight you get stopped out on future runs and yet you want them tight enough to be stopped out from future harm. It is even harder than learning the Tango(that's for another late night post...;-))
I believe this Stop criteria I have designed, for the team, does this well and efficiently. Sheesh, where else can you get this stuff for free and second, who else, who charges you, has this high of success rates?...;-) (Just had to brag a little)
Hey Doc ...
I'm back from Montana, and have been reading the many posts on GLAD and variations. I have to congratulate you on your diligence, and apparently on your success. The ultimate chartist.
I don't play GLAD - yet not, at least - but I must ask if you are at all bothered by the stocks you play with. I know that it doesn't matter, given the theory and techniques of what you are doing, so I guess I am just a Nervous Nellie. However, as a value investor, I wouldn't buy those stocks with your money, so it feels like something is not right with that. Anyway, I'll continue to read and learn .... my portfolio is pretty hot right now, though.
BTW, the place we stayed at in Montana was developed as a private club by Charles Schwab, although he has sold it. There is still a dish on the menu called "Chuck's Chicken" which is cooked the way he liked it.
I am happy you had a great trip. I have seen the place you stayed at advertised before and it is truly "The Digs"!!
I would not choose at all to be a "Buy and Hold" for any of the stocks on the Varsity team, or even the Red Shirts...except maybe FSC.
The principle behind Glad/1.5%, which it sounds like you are coming around to, is to seize a piece of pie every time we walk by the fridge....;-)
Take JTP for example(I have used this illustration in the cover sheet of the New Rule Guide) if you mail me @ DocReits@gmail I will send you a copy. 50 consecutive previous months Ray, going back to Mar 13, 2009 , only two month losers in the amount of 1 cent and 15 cents using Glad/1.5%.
It doesn't take a lot of faith to figure out where the next 12 months should end up....;-)
The past is no guaranty for the future, of course, because the future is uncertain. The past is not.
Your team that just missed the national title(sorry), had a pretty impressive record of wins, right? A lot of people placed bets on that team to win the title. What did they base their expectations upon?? The future? NO!! They based it upon the team's "PAST" performance!! Think about it...;-)
If you read my other posts including the Rule sheet, you will see that I have moved the 5 all star team to CLT, CFP, CRF, JTP and JPC. These all have a better free throw average and 3 point average in producing historic 90+% historical returns. ARR and FSC are Red shirted to the bench and are brought out on special occasions because of their lower free throw averages of 80%.
I am a coach, and will play those players who play better...very easy when we have their past performance to look at. We do this all the time(make probability assumptions based upon what we have seen in the past...just like the sport's coach) yet, many are so resistant in being able to get their minds around doing so with the market.