14 Dec 23 Practice Results (KR)

Ticker: KR

Date	Trade	Quantity	Entry	Stop Loss	Profit Target	Result	Remarks
10 Jun 13	Buy	1	17.35	16.4825	18.65125	Loss after 9 days.	Stopped out by 7 cents
11 Oct 13	Buy	1	20.445	19.42275	21.978375	Loss after 47 days.	Miss take profit by 5 cents
16 Jan 14	Sell	1	19.03	19.9815	17.60275	Profit after 14 days
3 Apr 14	Buy	1	22.695	21.56025	24.397125	Profit after 55 days
15 Aug 14	Buy	1	25.385	24.11575	27.288875	Profit after 48 days	Skipped an unprofitable trade because take profit not hit yet. That trade will be stopped out by a few cents.
8 Dec 14	Buy	1	30.68	29.146	32.981	Profit after 22 days
13 Mar 14	Buy	1	38.315	36.39925	41.188625	Loss after 24 days
29 Apr 15	Sell	1	34.615	36.34575	32.018875	Loss after 9 days.
15 Mar 15	Buy	1	36.36	34.542	39.087	Profit after 45 days	Skipped an unprofitable trade because profit target not hit yet
3 Dec 15	Buy	1	38.72	36.784	41.624	Profit after 3 days
14 Jan 16	Sell	1	39.04	40.992	36.112	Profit after 17 days
12 Apr 16	Sell	1	37.03	38.8815	34.25275	Profit after 17 days
17 Aug 16	Sell	1	31.96	33.558	29.563	Profit after 31 days
30 Nov 16	Sell	1	32.81	34.4505	30.34925	Loss after 8 days
15 Dec 16	Buy	1	35.48	33.706	38.141	Loss after 12 days	Should not have entered this trade because the breakout candle was weak
8 Feb 17	Sell	1	32.97	34.6185	30.49725	Loss after 8 days	Stopped out by 15 cents
3 Mar 17	Sell	1	30.16	31.668	27.898	Profit after 73 days
2 Oct 17	Sell	1	19.99	20.9895	18.49075	Loss after 7 days	Poor setup. Refer to below.
9 Nov 17	Buy	1	21.94	20.843	23.5855	Profit after 13 days
20 Dec 17	Buy	1	27.19	25.8305	29.22925	Profit after 19 days
22 Feb 18	Sell	1	27.12	28.476	25.086	Profit after 11 days
7 Jun 18	Buy	1	25.16	23.902	27.047	Profit after 11 days
25 Jul 18	Sell	1	27.82	29.211	25.7335	Loss after 4 days
3 Aug 18	Buy	1	29.94	28.443	32.1855	Profit after 15 days
30 Oct 18	Buy	1	28.91	27.4645	31.07825	Profit after 7 days
23 Nov 18	Sell	1	29.36	30.828	27.158	Profit after 21 days
11 Feb 19	Sell	1	27.52	28.896	25.456	Loss after 3 days
13 Feb 19	Buy	1	28.9	27.455	31.0675	Loss after 12 days	Narrowly missed a horrible gap down

Net Win

The trades above use a 5% stop loss and a 7.5% take profit.

Win: 17, Loss: 11

Using a risk reward ratio of 1:1.5, the net win is 17*1.5-11 = 14.5 risk units. In other words, if one unit of risk is 5%, the net profit is 72.5%. That works out to be about 12% per year for one stock.

Defining the setup more specifically

The ideal breakout candle

• more than half of the breakout candle’s left edge is outside the channel
• breakout candle is a strong trend bar
• breakout candle is in the direction of the trade (i.e., bullish for buy, bearish for sell)
• breakout candle is of a decent size, preferably at least the vertical height of the channel

More Research Needed on…

There are a couple of things I should improve on.

1. How to define the setup more specifically
2. Can I improve on the stop loss and take profit? Is 1.5 RR optimal? How can I get more out of a trend?
3. Can I spot when is a bad environment to trade this strategy?
4. Do I pyramid? It seems like not adding on to positions before profit target is reached helped me avoid some bad trades.

The most important thing to research is how can I get more out of a trend.