At TA Today, high conviction trades are entered into as examples. These examples utilize the neoclassical model for entry, management and exit. They are intended as evidence of the value of the neoclassical model and it's ability to consistently profit in the equity markets.
The following is a description of all the fields found on the OPEN ORDERS/POSITIONS tab of the Community Activity Page
- Symbol - This is the stock, ETF, ETN symbol that is being traded
- Time Frame - The time frame is an indication of the expected period of time the trade will be traded on. Values range from 30 minute to monthly time frames with daily and weekly in between the extremes.
- As an example, if the time frame is designated as daily then the trading parameters for that trade are based upon the daily chart (even though all time frames are examined) and the expected life cycle of the trade can be as little a day or two or a few weeks worth of days
- Updated - This is the timestamp of the last time any activity has occurred on this potential/actual trade.
- Note that on the summary posts tab, any updates to any thread is kept as part of that thread and is presented in latest update LIFO order
- Status - One of two value - filled or unfilled
- Type - An indication of whether the trade is long or short.
- Note that given that there are inverse ETFs/ETNs available as trading instruments, a long position in an inverse ETF would show as long even though it would effectively be a short position that is being traded
- Trade Conviction - This is a reflection of just how much conviction the potential trade carries.
- The value ranges from 0 to 10 with 0 being no conviction (which will never happen) and 10 being absolute conviction (which also will never happen)
- The value of trade conviction can be used to effectively determine position sizing.
- As an example, a trade of conviction of 4.52 would indicate that you could take a position size that is 4.52% of your overall portfolio
- The built in portfolio sizer assumes a maximum of 12 positions and sizes accordingly based on the probability of success and the return-to-risk of each trade
- Cumulative Open Position Size - The cumulative percentage size relative to the overall portfolio of trades that are currently activity.
- For example, a cumulative open position size of 42.22% is telling you that 42.22% of the portfolio is currently invested in open trades
- Until the trade status is "Filled" the value will be 0 (zero)
- Entry Price - The price upon which the trade is entered into
- In neoclassical trading this is almost always a price associated with some retrace since retraces offer the greatest probabilities of success in most cases
- Entry, target and stop prices are utilized to determine reward-to-risk ratios
- Target Price - This is the price projection as determined neoclassically at the time the trade is initiated.
- Stop Price - This is the stop price as determined neoclassically at the time the trade is initiated.
Life Cycle
- Open positions can be viewed as having a life cycle. They are initially proposed as a potential trade and have a status of unfilled.
- If the entry price is equal to the current price at the time the potential trade is posted, then the trade may be start out with a status of filled.
- Once an order has a "filled" status, then it shows up on the Performance tab
- Eventually an open position will be closed either as a result of a stop triggering or a target price being achieved.
- When an open position is "closed", the final numbers are updated on the Performance tab
Data Archiving
Over time to much detailed data accumulates and thus the data is archived. Eventually access to all archived data will be available for view