Method
Systematic Stock trading system.
Trading SystemsEngaging with the financial markets can be a hazardous experience!
Without a plan or a set of rules, losses can quickly get out of control and accounts destroyed. This site describes a rules based trading system for a portfolio of five mega cap stocks. By following a logical plan, we increase our odds of success and gain confidence in the markets. Although there is never any guarantee that the future will replicate the past, we are confident over a long time horizon it should be similar and results will reflect this. |
FA(A)NG StocksThe anacronym FANG originates from the names of four well known companies; Facebook, Amazon, Netflix and Goggle.
Later Apple was added to make FAANG. Only the five stocks mentioned are included in the portfolio for the FAANG trading system described. They have all experienced tremendous growth and are easy to buy and sell, highly unlikely to ever go bust, thus are ideal candidates for this simple strategy. |
Trading StrategyThe five stocks are traded using a weekly system. This means trading signals (if any) are generated after the market has closed on Friday.
New trades are actioned on Monday. As such it requires very little time to implement and there is no need to watch the markets during the week. The trading system utilises a weekly mechanical trend following system, which has precisely defined rules for entry and exiting each trade. Click below to access the document containing these, along with back-test results and long term system performance. |