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Buffalo Bill

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Posts: 539

Joined: 10/3/2006
Location: Stafford, VA

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Subject : RE: RTMs – A Significant Observation?
Posted : 1/30/2019 8:19 AM
Post #45968 - In reply to #45965

Mark

This is exactly the same experience I suffered thru last year. small gain after small gain then big loss.

Some thoughts - use $VIX as a RTM cutoff? $VIX>25 lets say, or VTY price on the VIX? The day that the stock/index drops and triggers the RTM all-in scenario you would hope would have some tell-tale change like $VIX increase (for the market) or some change in the stock itself - maybe a drop bigger than the ave ATR over the last X days?

Another factor - and this bit me - bad news causing a sudden drop. Had a pharma stock get entered by RTMs after a sudden drop from a long upswing. The drop was caused by the company's main drug failing to pass the FDA test. That isn't going to rebound and currently I know of no way to scan for things like that (bad news vs tech indicators)
Deleting message 45968 : RE: RTMs – A Significant Observation?


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