Weekly Breakout
The most proven aspect of trading/investing is that asset prices trend over the long run. This algorithm looks for stocks in weekly trends and moving higher. Our job is to hop on the trends we like for this list and ride them until they end.
This is a longer term strategy with an average winning hold time of over 2 months so we want to do some research on these names to make sure they are names we want to hold for the long run.
Exit Rules:
Stop loss provided with each trade.
No profit targets since we want to ride trends as long as we can.
We want to exit on a daily close below the 50 period moving average OR a new 20 day low.
We hold between 5 and 10 names (based on risk tolerance) only looking to buy more when we are stoped out of a current holders and have allocated buying power freed up to replace.