VT - CTP strategy applied

CTP - The Counter Trend Positioning Strategy

Note that there are three posts to complete the trading and comparison.

I won't list the stops as they move faster with this method as they follow the price up within the trend...more or less along the green and red TWT lines on the chart. The position will always be 100 shares either short or long. The target is always about $3 but I and skewing the trades against me so I will use $2 for the P/R ratio.

• 1st trade - mid Aug, buy 100 shares @ $10.00, stop starts at $9.50


• P/R = 4:1 potential loss at this point was $50


• stop out at $11.50, realized gain = $150


• 2nd trade - Early Oct, Short 100 shares @ $12.50, stop starts at $13.00


• P/R = 4:1 potential loss at this point is $50...but there is already a gain...so a loss on this trade would be a loss of profit, not a loss of capital...this is a very important part of the strategy, keeping the capital intact.


• stop out at $12.00, realized gain = $50


• 3rd trade - early Nov, short 100 shares @ $12.50, stop starts at $13.00


• P/R = 4:1 potential loss at this point was $50


• stop out at $11.25, realized gain = $125


• 4th trade - Late Nov, buy 100 shares @ $11.00, stop starts at $10.50


• P/R = 4:1 potential loss at this point was $50


• stop out at $12.50, realized gain = $150


• 5th trade - Early Jan, short 100 shares @ $13.00, stop starts at $13.50


• P/R = 4:1 potential loss at this point was $50


• stop out at $11.50, realized gain = $150


• 6th trade - early Feb, buy 100 shares @ $11.50, stop starts at $11.00


• P/R = 4:1 potential loss at this point was $50


• stop out at $12.75, realized gain = $125


• 7th trade - Mid Mar, buy 100 shares @ $12.00, stop starts at $11.50


• P/R = 4:1 potential loss at this point was $50


• stop out at $14.25, realized gain = $225


• 8th trade - Late Nov, short 100 shares @ $14.50, stop starts at $15.00


• P/R = 4:1 potential loss at this point was $50


• stop out at $13.50, realized gain = $100


• last trade - Mid May, buy 100 shares @ $13.00, stop starts at $12.50


• P/R = 4:1 potential loss again is $50


• the stop today would be at $14.00, the close yesterday of $14.73

The final CTP tally to date

At yesterday's close = $14.73, the paper profit for the outstanding trade = $173.00. The realized gains would be $1075.00. The capital used for this would be $1450.00 for the highest cost trade, about 25% of the capital.

JD.