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*30 Minute Trading Rule:
In order to prevent whipsaws, we use a 30 minute trading rule. Thismeans that, as a general rule, we are going to "sit on our hands"during the first 30 minutes of trading, this includes thelifting of stops during this 30 minute period as well. Additionally, ifafter the first 30 minutes of trading the range of the stock pick iswithin the stop and buy/short boundaries presented, the traderecommendation is valid. If the stock's range is outside of thebuy/short and stop boundary, the trade recommendation is VOID. E.g. ifthe recommendation is "Buy a print of 10.25, with a stop of 9.95," andthe stock trades up to 10.50 during the first 30 minutes, we would passon the trade. Similarly, if that stock were to trade down to 9.90before 10:26, the trade would also be void.
In addition, due to Market Makers,programmers, andmarket miscreants targeting our stops, a long pick must trade at a stopor below for a full 5 minute bar before actually triggering the stop.For a short pick, the stop must trade at or above the stop for a fullfive minutes before triggering a stop. This should have the effect ofreducing the risk of 'gunning for our stops', though it will subject usto more technical risk. At this point, we believe it is a worthwhiletrade off.
There is no 30mn rule on limit orders, but if price gaps out of thebuy/stop range the trade is void.
Rule on stops: As a general rule for themodel portfolio, we will lift all stops on existing positions for thefirst 30 minutes of trading. As a practical matter, subscribers maywish to leave their stops in place if they expect to be incommunicadoor unavailable during that time to monitor positions.
| PastPerformance is not a guarantee of future returns.
Trading is risky. Trading entails uniquerisks, so get with your broker and do your homework before you take anytrades based upon this or any model, newsletter, or trading service.Never trade with money that is necessary to your near- or long-termfinancial well-being.
None of the ChartSmarts™ Newsletters should be construed as asolicitation to buy or sell any security or commodity. We aren't youradvisor and we aren't your broker. Any decisions you make are yoursalone.
Though we do keep a hypothetical valued account track record, none ofthe performance referred to should be construed to be that of an actualaccount. Performance is not based upon back testing, and it does notrepresent an actual trading account unless explicitly stated. From timeto time, we'll be trading the same ideas that we're discussing here. Wemake every effort to insure that we and our associates not "front-run"subscribers, or to otherwise affect the price of securities that wehold or discuss. Be aware that sometimes we, or our clients, family, orassociates, will hold the same securities that we discuss inChartSmarts. Occasionally, our trading actions may not be the same asthose discussed in ChartSmarts, for a variety of reasons. We will neverattempt to manipulate the price of any stock for any reason.ChartSmarts(the "Newsletter') is protected by federal and international copyrightlaws. Equity Guardian Group, LLC., publisher of the Newsletter andowner of all rights therein, retains all proprietary rights to theNewsletter. Equity Guardian Group, LLC. hereby grants you, as asubscriber, the limited right and license to this issue. All recipientsmust receive the Newsletter directly from ChartSmarts.com. TheNewsletter may not be forwarded or copied without the prior writtenpermission of Equity Guardian Group, LLC.
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