Another profitable night

Good morning,

I was looking at all my past trading records and decisions I made to enter and exit my positions for the past months and I am quite amazed at myself for following the rules I set for KUTE. I am surprised that I was disciplined and though there were times where I bought without any reference to the rules, e.g. Citibank, more than 80% of my trades were bought following these rules. The 80% of these trades were all in the money and there was not a single losing trade. Well, I must admit that sometimes I did hold the stocks for longer period than expected, but because I followed KUTE money management rules, the stocks had time to recover and turned losses into profits. The main reason why I am following these rules is because I have many traders following KUTE and I have to study, refine and use the KUTE religiously so that I can be honest to these believers. Honestly I don’t think there’s any perfect system or method that can predict the markets with 100% accuracy and likewise KUTE is not the perfect system. However regardless of any system is used, the possibilities to be consistently profitable is much higher if only the system can be followed for every trade. Writing this blog helps me to think through the decisions and reasons for trading the stocks and makes me a better trader. Let me share with you my summary of the decisions for the timing of buy;

Cycle trend up and candle bullish; buy at open if daily candle is bullish; place 0.3% above last close if daily is wait or hold; wait to drop 0.5% below last close if daily is bearish.

Either one of the signals is bullish and the other is a wait or hold, same rule applies.

Cycle trend up and candle bearish – 5% below last close if daily is a wait or hold. Do not buy if daily is sell-if or sell confirmed.

If cycle is bearish but candle very bullish, same decision as above

If both are bearish, stay out

I am excited at these rules and let me show you the trades I made last night during the first trading session:

DSX closed at $16.32 for last night's position of $16.03, trade reference EXTHWKAW

DSX bought at $15.90 tonight and closed at $16.15, trade reference EXRK2ZAW

NOV bought at $45.95 tonight and closed at $46.80, trade reference EXRKZ5AW

I have also bought 2 positions of RDC at $24.68 and $24.68. The stock closed at $24.86, down 0.28% from last night’s close, but both positions are in the money.

NOV closed down 0.02% at $46.35, NE was up $1.25% at $44.44, PDE gained 0.65% to close at $32.47, and DOX lost 2.65% at $27.87. DSX gained 0.87% to close at $16.18 and my position bought the previous night at $16.24 is still out of the money.

Have a great day.

Francies Cheng
BBus MAppliedFinance