FXI

[Larry]

Howdy. Shouldn't FXI be an open trade on the SWS RS USA portfolio?
Cheers
Larry

[Gary Stone]

Larry,

No, it is 'Not Valid' for an RS portfolio. Easiest place to see this is the Share Wealth Alerts APP.

Regards,
Gary

[Larry]

Hello Gary
In BC, on the Investor scan a few days ago, the swing chart for FXI was listed as valid. (One of four: GLD SLV EWH FXI. Now only GLD SLV are valid.) So I thought valid meant get in as it is an open position. I've misunderstood something here.
Cheers
Larry

[Gary Stone]

Larry,

I have just stepped through the FXI chart 1 day at a time (using Chart, Period, Custom Settings) and after EWZ was exited on Dec 26th, FXI did become valid for 1 day only at the close of trading on Dec 31.

You are correct, FXI should have been opened in the January 2 session. I missed this.

At the close of the January 2 session FXI was once again Invalid.

As this portfolio is not real-money, I'll update TradeMaster to reflect the clean execution of the rules and the results that come from such execution.

If this RS Public Portfolio was still a real-money portfolio and the trade was missed, the rule would be to correct the trading error as soon as it was discovered using the up-to-date data at hand. Therefore, the trade would have been missed and logged in the Trading Journal as an execution error.

Regards,
Gary

[Larry]

Thanks for clarifying that, Gary.

If FP Markets is now the broker of choice, is it correct to say the brokerage for the Public RS portfolio should be changed to $15 minimum.
Cheers
Larry

[Gary Stone]

Larry,

Yes, will change the Default.

Thanks for pointing out the FXI trade and the brokerage.

Regards
Gary

[Larry]

Howdy Gary.
I'm still confused. I thought Invalid meant that basically there was a lower low on the swing chart. Therefore wouldn't the 28th Dec (higher low) become valid for an entry on the 31st Dec?
And with your 2nd Jan entry price, it's recorded as the close price, not the open price which is more profitable.
Cheers
Larry

[Gary Stone]

Larry,

It is Invalid to enter a trade in a Relative Strength portfolio while the current lowest low is lower than the previous trough.

On Dec 28th the trough had not been confirmed as a trough. The confirmation of the Dec 27th trough occurred on Dec 31st when a new 3 day high occurred.

RE using the Close price. I used the Close to exit the EWZ trade. Over the summer with the market close being 08h00 AEDT I have exited trades in the live-traded real-money portfolios in the last hour of trade.

There is no  research that proves one or the other being better over a large sample. It really comes down to what your execution platform offers by way of order types and which is easiest for the individual to do.

Regards
Gary

[Larry]

Thanks for all the information, Gary.