I recently posted an article in invezz.com launching my new Social Media Stocks Day Trading Strategy centered around an XTL Breakout strategy on shorter time frames for the three Social Media Stocks ; Twitter, LinkedIn and Facebook. The Full article explains the technical functions of this trading strategy and is worth a read to fully understand the three trades below. The Article can be read HERE.
The following three trades on each of the three Social Media Stocks were SHORT SELL trades on 15 minutes charts that triggered just about at the same time on the 07 July 2014 and closed the following day. There is an explanation and run through for each trade with time stamps (EST Time USA) of the critical points of the trades. In all my trading I always risk 1% of my trading account balance and this was the case here – so the distance between the open price and the original Stop Loss is 1% of my trading account balance at risk. The total profit on my trading account balance for these social media stocks short trades was a staggering 12.4%
1. TWTR 15 minute Chart – First XTL bar to turn red was at 10.45am on 07 July 2014. The bar is in with my limits of average or smaller than the preceding 20 bars. During the next bar I placed the SELL order @ 40.63 which was at 150% of the the length of the first XTL red bar and taken from the high of that same bar. The Stop Loss was at 150% of the length of the same XTL red bar but this time take from the low and projected up to 41.34. The trade triggered on the third Red bar t 11.15am and then became range bound in a similar way to the other two social media stocks. Once the price had surpassed the 1.6% profit line, I used the 6/4 Moving Average High Line (Blue MA line) as a Trailing Stop. At 13.15 on the 8th July the Trailing Stop was taken out giving me a 6% profit on my trading account balance on this trade. As Below
2. FB 15 Minute Chart – First XTL bar to turn red was at 10.45am on 07 July 2014, the same as the TWTR trade above. the criteria for the first bar was as above and the positioning of the entry point and stop loss was the same. SELL at 65.54 with the Stop Loss at 66.32. The trade triggered on the third bar at 11.15am then the price became somewhat range bound, which can be the case with the social media stocks. Again, once the price had dropped below the 1.6% profit line, I used the 6/4 MA High Line as a Trailing Stop. At 13:15pm on the 08th July the Trailing Stop was taken out, giving me a 3% profit on my trading account balance for this particular trade. As Below
3. LNKD 15 Minute Chart – First XTL bar to turn red was at 10.45am on 07 July 2014 and was the same as the other two social media stocks above. This is obviously the first time I have seen during the last three months that all three social media stocks have been aligned in the same direction with initial XTL breakout bars at the same time. the overall negative movement of the US markets must have had a hand in this but I will watch in the future. Unlike the previous two trades, this trade triggered at 11.45am. and then was range bound for the rest of the session. On the following day, once the price had dropped below the 1.6% profit line, I managed the trade with a Trailing Stop at the 6/4 MA High line. Eventually at 13.30pm on the 08th July the Trailing stop was taken out, giving a profit of 3.4% on my trading account balance. As below