Audio Pixels (ASX:AKP)
Hi,
After my last post I was thinking about position sizing, more specifically risk management/ exposure. Previously, I was using a trade size of $2000 every trade however, I am now going to start using a volatility based approach. I will only be placing trades that I believe have significant upside and using its volatility as position sizing (based on 1 ATR below market structure). I will risk 1% of my total portfolio every trade.
DISCLAIMER: I am not a qualified financial analyst. The following is for informational purposes only and is not to be taken as financial advice.
As stated previously, I believe the recent bear market has stopped temporarily and there will be a bull market in the medium term. Thus I am looking for longs.
The weekly MACD line is above the signal line which indicates the stock is in an uptrend. The only worry I have is that there is convergence however looking back, convergence does not necessarily mean a reverse in trend on the weekly so I maintain a bullish bias.
On the daily, w can see that the stock has pulled back to a key support level. The 50EMA which was respected once before; and also the key resistance level based on the previous high.
The stochastic is indicating oversold which indicates upside potential, suggesting a bounce from current levels.
MACD converged which is a buy sign.
Mkt. value: $1789.50
Averaged entry: $20.57
Stop loss: $19.41
Risk: 1% of portfolio
Cheers,
Howard
After my last post I was thinking about position sizing, more specifically risk management/ exposure. Previously, I was using a trade size of $2000 every trade however, I am now going to start using a volatility based approach. I will only be placing trades that I believe have significant upside and using its volatility as position sizing (based on 1 ATR below market structure). I will risk 1% of my total portfolio every trade.
DISCLAIMER: I am not a qualified financial analyst. The following is for informational purposes only and is not to be taken as financial advice.
As stated previously, I believe the recent bear market has stopped temporarily and there will be a bull market in the medium term. Thus I am looking for longs.
The weekly MACD line is above the signal line which indicates the stock is in an uptrend. The only worry I have is that there is convergence however looking back, convergence does not necessarily mean a reverse in trend on the weekly so I maintain a bullish bias.
The stochastic is indicating oversold which indicates upside potential, suggesting a bounce from current levels.
MACD converged which is a buy sign.
Mkt. value: $1789.50
Averaged entry: $20.57
Stop loss: $19.41
Risk: 1% of portfolio
Cheers,
Howard
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