Success in the stock market comes down to consistently repeating a process that has an ‘edge’. Below are just about the only setups I use to buy stocks, my edge in buying the in the market.
I was just curious to know would you play any type of inside bar? or do you want something specific to drive it up? Like a stock can form an inside day randomly as well, would you trade it? Thank you
I want to see the inside bar in the context of a short term up trend as a continuation pattern, OR for a pullback buy, ideally occuring above a moving average.
My studies show they are great setups that offer excellent risk/reward.
MOST of the time I will wait for my alert to hit and then execute my buy. If I am unable to be at screens for whatever reason, I will use a buy stop order to ensure I get my fill.
If my pre-determined entry price is hit, I am in. Hope that helps.
1. I use a Canadian broker, Disnat for my stock trading. For futures I use AMP but want to roll over to IBKR soon.
2. I rarely use a buy stop order, only if I know I will be in a meeting, or occupied with something else that means I won't have access to my phone.
I will use an opening range high breakout on the 5m to enter a gap that's gone above my desired entry point. Sometimes if it gaps too much, I will pass on it. If there's tonnes of volume, sometimes even a market order with a fixed 2% stop works.
3. I am watching my desired focus list very closely - when the alert triggers I enter my order.
4. Check our the entry tactics tab at the top of my homepage, it's all there under 'My 5 setups'. EMA pullback is explained there for you.
5. The system signal was created with a partner, and at the moment I am unable to share the source code. That being said, I share the chart every night with members.
Thanks Francesco. You might want to check your 'My 5 setups'. EMA pullback again as the writeup for this setup didn't include Entry and SL, unlike other setups :)
Re system signal: Would be great if you could consider sharing the conditions (not source code) for green/yellow/red so that subscribers are not just following blindly, but understand the logic behind it.
On a separate note, do you have a max limit of # of stocks for Focus list?
When market is good and trending and you get tons of stocks that fulfill your requirements and make it to your watch list, how do you narrow down to just a handful for Focus List? What criteria do you look at to narrow down?
The system signal is centered around the NASI oscillator, net highs/lows, the QQQ trading above and below its 10ema
I don't have a max number per se, but rarely is it over 12-15 names. Pre market I try and zero in on the best of the best, then I will just wait until the open to see what goes first. Sometimes you get the right one, sometimes you don't.
So I will always try and focus on the stocks in the strongest group, with the most liquidity. If I have two equally good setups, I will always choose the more liquid name.
It's my pleasure - apologies on my end for the late reply.
Hi Francesco, Thanks for these setups, for position sizing 0.5% risk. How do you calculate the 0.5%, using previous day pivot or low of the breakout candle which is being formed?
I will usually use the low of breakout candle. That gives me the chance to use a large position. However, I cap my new positions at 20% so it never exceeds that level.
For the EP setups, do you trade only on earnings or also on news ? Do you ever try to enter on day 2 like Rai and Greg Duncan does? Do you plan to alert members if you see a interesting name on the pre-market or these setups will not be covered in the newsletter ?
Hi there! I went over my screening process and details of it in last Sunday’s newsletter, in the Q&A section :) let me know if you have any questions. Thanks.
I'm curious as to the specifics of your entry and stop loss for EMA pullbacks. Do you use the same rules as outlined for trendline breakouts or something similar?
I was just curious to know would you play any type of inside bar? or do you want something specific to drive it up? Like a stock can form an inside day randomly as well, would you trade it? Thank you
Hi Aaryyan,
I want to see the inside bar in the context of a short term up trend as a continuation pattern, OR for a pullback buy, ideally occuring above a moving average.
My studies show they are great setups that offer excellent risk/reward.
Hope that helps!
Thank you so much! 🙏
Hi, do you ever set buy stops before market opens?
Or do you get an alert on your watchlist stock and then immediately place your order?
If alert hits right at market open, do you buy immediately? Or do you choose to wait first 10-15 minutes after market opens?
Sorry for all the questions. New member :)
Hi Cris - firstly, thank you and welcome aboard!
MOST of the time I will wait for my alert to hit and then execute my buy. If I am unable to be at screens for whatever reason, I will use a buy stop order to ensure I get my fill.
If my pre-determined entry price is hit, I am in. Hope that helps.
Please reach out any time! Thanks Cris.
Francesco
Hi Francesco, new member here as well. Tagging on to this question here:
1. Are you using IBKR as broker?
2. When you do use buy stop order, do you also have limit condition such that price is not too far off .e.g gap up from your pre-determined buy point?
3. Your alerts are set slightly below your buy price for longs so that you have time to react & execute?
4. For Buying into EMA pullback, your Entry and Stop Loss method is not stated.
5. Can you share your System Signal template in TradingView with us?
Appreciate your inputs. Thanks!
Hi Jordan!
1. I use a Canadian broker, Disnat for my stock trading. For futures I use AMP but want to roll over to IBKR soon.
2. I rarely use a buy stop order, only if I know I will be in a meeting, or occupied with something else that means I won't have access to my phone.
I will use an opening range high breakout on the 5m to enter a gap that's gone above my desired entry point. Sometimes if it gaps too much, I will pass on it. If there's tonnes of volume, sometimes even a market order with a fixed 2% stop works.
3. I am watching my desired focus list very closely - when the alert triggers I enter my order.
4. Check our the entry tactics tab at the top of my homepage, it's all there under 'My 5 setups'. EMA pullback is explained there for you.
5. The system signal was created with a partner, and at the moment I am unable to share the source code. That being said, I share the chart every night with members.
Thank you Jordan!
Thanks Francesco. You might want to check your 'My 5 setups'. EMA pullback again as the writeup for this setup didn't include Entry and SL, unlike other setups :)
Re system signal: Would be great if you could consider sharing the conditions (not source code) for green/yellow/red so that subscribers are not just following blindly, but understand the logic behind it.
On a separate note, do you have a max limit of # of stocks for Focus list?
When market is good and trending and you get tons of stocks that fulfill your requirements and make it to your watch list, how do you narrow down to just a handful for Focus List? What criteria do you look at to narrow down?
Apologies for the many questions. Thank you.
Hi Jordan,
Must be an error, thanks for letting me know.
The system signal is centered around the NASI oscillator, net highs/lows, the QQQ trading above and below its 10ema
I don't have a max number per se, but rarely is it over 12-15 names. Pre market I try and zero in on the best of the best, then I will just wait until the open to see what goes first. Sometimes you get the right one, sometimes you don't.
So I will always try and focus on the stocks in the strongest group, with the most liquidity. If I have two equally good setups, I will always choose the more liquid name.
It's my pleasure - apologies on my end for the late reply.
Hi Francesco, Thanks for these setups, for position sizing 0.5% risk. How do you calculate the 0.5%, using previous day pivot or low of the breakout candle which is being formed?
Hi Shiv!
I will usually use the low of breakout candle. That gives me the chance to use a large position. However, I cap my new positions at 20% so it never exceeds that level.
Hi, is 20% your typical initial position size?
can you do a video on these 5 setups. Thanks in advance.
Definitely, Biren.
Thanks
Hi Francesco,
For the EP setups, do you trade only on earnings or also on news ? Do you ever try to enter on day 2 like Rai and Greg Duncan does? Do you plan to alert members if you see a interesting name on the pre-market or these setups will not be covered in the newsletter ?
Hi CK,
I only play them on earnings - I have found that news can often be faded, whereas earnings gaps are much more significant.
I always play them Day 1, and if I miss the trade i'll wait for a new setup. I will definitely be alerting members :) can't wait for earnings season!
Hey Francesco can you please share your scanner??
Hi there! I went over my screening process and details of it in last Sunday’s newsletter, in the Q&A section :) let me know if you have any questions. Thanks.
I'm curious as to the specifics of your entry and stop loss for EMA pullbacks. Do you use the same rules as outlined for trendline breakouts or something similar?
Hi Troy, just about the same rules. The stop loss will be placed just below the moving average ideally (for the EMA pullbacks)
Entries are always upon making a higher high as outlined
Some solid entry tactics, and keeping it simple at the same time.
Thanks a lot Chris. Let me know if you have any questions. Simple is always best, imo