February Review

We had 15 triggers in February and here is the breakdown:

2 losses (meaning that a stock confirms our number and then reverses to hit our 0.3% stop-loss)

8 wins (stock has to reach a minimum of 1%)

5 draws (either the market closes with the stock not able to reach 1%, or the stock goes up 0.5% and reverses -- our rule is that if a stock goes up 0.5% from alert price, then stop is moved to alert price minus one penny).


Notes of interest:
1) There was no difference between the 0.3% stop-loss and the 1% stop this month.

2) When our trades went up 0.5% and then reversed past the alert price, all of them would have also hit the original stop. This confirms our belief that when a momentum stock breaks out, it should either go or fail, but not meander around. This also reaffirms our decision to move stop up once 0.5% is achieved. Absolute key to our system is to keep losses small and a 0.3% super-tight stop helps us achieve that goal.

We're pleased with the stats, and having only 2 losses is great. However, we wish there had been more opportunity (we had 21 triggers in January for example). We believe that March will be even more difficult but as always, we'll let the charts lead us.