SATS2 Trading for More Profit

Let see if we can make more money avoiding some losing trades, ignoring some of the SATS2 buying signals and taking some early profits before the SATS2 selling signal. As an example we use AMD during the back test period of 02/28/2003 till 11/21/2008. During this period AMD makes a profit of 143% trading all SATS2 signals. 

 

We use a starting capital for AMD of $1,000.

We start with the first buying signal from the SATS2 back test of AMD on March 12, 2003 (figure 2.10). After a long term downtrend (not shown) with a wave [C] bottom beginning of October, price starts a new up move. It now looks like we have finished wave [1] and [2] of the new long term up move, starting longer term wave [3] up.

Figure 2.10: AMD first SATS2 back test buying signal on 03/12/2003

Search the Internet

 

On 03/12/2003: we buy shares 181*$5.52 = $999.

In figure 2.11 you can see how price moves up, now completing wave (5). Since we are expecting a long term wave [3] up, we can assume that this is the top for medium term wave {1}. There is no selling signal from SATS2.

Figure 2.11: Wave {1} completed? Close the position early now?

We are now at a point where we could decide to close our position early based on the following arguments:

1. Price finished an Elliott 5-impulse wave up (1) to (5).
2. Price breaks now the third most accelerating trendline up.
3. SVE_RSI_Swing turned down and falls through the 50-level.
4. SVE_RSI_Osc is turning down the second day in a row.
5. We have a very nice profit.

It looks like taking profit now is not a bad idea.

 

SATS2 More Profit Trading NEXT -Part 1 -Part 2 -Part 3

STOCATA Stocks Technical Analysis HOME