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Tuesday, February 3rd, 2009

February 3, 2009 - HD; Automated Trading using Trade-Ideas via TDA in HD

Good morning traders. As before we are running the same three long and three short strategies. Over the course of the last several weeks we have seen the pendulum swing wildly in both directions. It's been common to watch profit and losses swing rather wildly. As an answer to this type of trading environment our system is entering orders much more conservatively than in November and December. We showed this to you in the last video but it's worth another view. Our trade instructions panel allows you to place trades slightly away from the market to let the stocks come to you versus trying to chase your entries. This has helped us in a number of ways. First, we are continuing to trade positively and second, we reduced the number of trades. A good defense is sometimes the best offense. Because the market had a positive bias at the open today you notice that we are in more short positions versus longs. As the robot continues to enter trades we are down overall after being stopped out of a long position as the rest of the stocks work themselves out. Today, we employ some grey box trading to exit our positions a little early in case the market would turn positive. It really proved to be the wise thing to do. There was a stop out on the short side as well as the long side and we also took profits on a short position in HNT. Overall, the gains were not great with just ¾ of a point but positive is still positive. These trades took place during the first 15 minutes of the market open. We sped the video up to accommodate your viewing time. Thanks for watching.


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