Eyeball

This is just whatever you think looks good, hence eyeball strategy. Use whatever moving averages you think will work best for the trade and use a daily or weekly timeframe, whichever you prefer.

Criteria:

  1. SPY fast MA > SPY slow MA at the beginning of the trading week

Trade Entry:

  • Use an ATR multiple that you see fit to determine stop loss and position sizing.
  • The risk will not be more than 1% of account value
  • The dollar amount to purchase will not be more than 10% of account value
  • The fast MA > the slow MA
  • Set limit buy order at the previous closing price for the following Monday

Trade Maintenance:

  • Maintain the purchasing ATR multiple as the trailing stop
  • Add 1 risk unit each time the expectancy gains 1, but do not add more than 3 times

Trade Exit:

  • If the closing price in whichever timeframe you use is below the stop price, sell the following trading day
  • If the fast MA crosses below the slow MA sell the next trading day