Friday, September 17, 2010

AMZN Trend Model

Amazon is one of the original stocks covered by the Trend Following Trading Models.  As you can see from the chart below, this has been an excellent swing trading model with commensurately profitable returns:


 AMZN Daily Trend Model






Past performance is no guarantee of future results.

5 comments:

Anonymous said...

Hey Allan,

I see that you have switched to using 3 instead of 2 in your trend model. Are you no longer using the original 1.5 or 2 in your trading or do you use different settings for different stocks or ETF's?
Thanks,
Eric

A said...

I still use 2 for some models, including a few weekly models. I've migrated a lot of others to 3, eliminating a significant number of whipsaws without degrading performance.

Anonymous said...

Thanks Allan!

Eric

Anonymous said...

what would you call AMZN's
elliott wave count at this point?

Digger said...

Chuck Lebeau probably did more than anyone to promote using ATR trailing stops with futures traders. He found a 3 x 20ATR (called the Chandelier exit) worked well but that was calculated from the high or low point not the close and the stop could back up if volatility increased the way he used it. It was in the market all the time as close only stops do prevent some whipsaws but can be account killers in extreme movements.

A couple articles- there are many more

http://seekingalpha.com/instablog/22392-david-white/6640-review-of-precise-entries-and-exits-by-charles-lebeau-market-place-books

http://www.actionforex.com/index2.php?option=com_content&do_pdf=1&id=205

Digger
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