PETM Stop Loss Techniques

From the largest and most comprehensive Analysis Site on the web.

Breaking News
Free Reports    FAST | ZMH | COF | F | PCG | ZMH | ABT | COL | COP | GLW | COST
Look for another Symbol?
Can't find your Company?
 
Annualized Returns of Trading Strategies for PETM
Best Returnat StopEpisodesLength Best +10at Stop -5 to -25
Buy and Hold22.35 %0.211201.00
Buy On Rise Hold28.69 %0.191330.74
Buy On Dip Hold37.19 %0.201276.39
Signal and Hold27.84 %0.181425.33
Stops Only27.32 %-0.104.0067.8523.19 %-0.110.65 %
Sell Signal Trim Stops27.75 %-0.104.0062.5522.61 %-0.114.69 %
Buy Signals47.95 %-0.094.0064.8138.60 %-0.1116.31 %
All Methods46.35 %-0.094.0059.5638.33 %-0.1120.86 %

This table shows the results some simple trading policies from brute-force calculations on every trading day during the last 10 years. The top lines of the table show results from several variations on the classic Buy and Hold strategy, for which the concept of stops does not apply. This much used strategy yielded 22.00 %.

The naïve interpretation of the Buy and Hold strategy is tested by buying on every day of the period, and evaluating the value of the accumulated holdings at the end. A less simplistic version might involve the momentum investor's ploy of buying only on rising prices, or the more contrarian tactic of buying on the dips.

Generally, we have found the Buy-On-Dip policy to offer better returns than the Buy-On-Rise. That is true in this case, indicating some of the benefit of betting against the crowd when investing. Both strategies offer improvement over the unadorned Buy and Hold. Using technical indicators to buy and then hold, improves on the simple Buy and Hold strategy, but is still not the best.

Strategies lacking a stop-loss policy are too dangerous, given that every stock, sooner or later, will become worthless.

From the Report Dated 11/11/2010: At least from the standpoint of a single company strategy, the best setting over the past 10 years has been -10 percent for PETM when adjusting stops weekly. This setting has produced a historical yield of 27.00 %. (The yield during the holding period is annualized to provide this figure).

Sliding Stops Reset Daily of PetSmart, Inc

How to set sliding stop limits for PetSmart, Inc:

Stop loss limit orders would appear to be almost always desirable. But where to set the stop limit is controversial. Setting to limit too low may allow for too great a loss. But setting the limit too high may cause the trade to "stop out" prematurely, perhaps missing a rally and also incurring an unwelcome brokerage fee.

Two issues need to be settled in arriving at a stop limit strategy. The first is to determine the price to position the stop loss at a percentage below the buy-in price. The second is to determine a strategy for raising or sliding the stop to lock in gains without undue risk of prematurely "stopping out" on some insignificant dip in price.

PETM:  Sliding Stops Reset Weekly


Some would advise you to set the stops at what you feel to be an acceptable loss. However, "feeling" is an extremely misleading guide. These charts are the output of a "brute force" calculation giving results for every stop loss setting from one percent to fifty percent on every trading day of the past ten years.

The bars represent the annual percentage appreciation achieved for each stop loss setting. This percentage is numbered on the right (blue) axis. The purple line depicts the number of "stop outs" on average per year at each stop loss setting . Transaction costs directly relate to this number on the left (purple) axis.

Sliding Stops Reset Monthly of PetSmart, Inc

These charts represent different strategies for "sliding" the stops to lock in gains. The first simply moves the stop up every day to the pre-determined percentage below the close price. The others move the stops up at the end of every week, and at the end of every month. Generally speaking, it seems better to move the stops less frequently than daily.

General Market Conditions

Subscribe

More than 70 Hi-Rez charts daily for PetSmart, Inc:








PETM:  Sliding stops trimmed by sell signals
PETM:  Buy Signals and sliding stops
Buy Signals and sliding stops of PetSmart, Inc




Technical Buy Signals and Trailing Stop-loss

Trailing stops set at -18.00 %
StartEndBuy InEnd PriceDifTotalTypeSessions
4/26/20019/17/20013.955.911.961.96195
8/8/20019/17/20017.105.91-1.190.77123
8/23/20019/17/20017.195.91-1.28-0.51112
10/16/20017/2/20027.1813.656.475.961177
11/2/20017/2/20028.2613.655.3911.351164
11/26/20017/2/20028.0913.655.5616.911149
3/1/20027/2/200210.9513.652.7019.61185
7/19/20021/15/200314.0515.241.1920.801124
7/31/20021/15/200313.7615.241.4822.281116
12/20/20021/24/200316.5214.15-2.3719.91122
1/28/20033/5/200314.6910.53-4.1615.75125
3/5/200312/10/200310.5321.3810.8526.601195
11/20/20033/4/200524.2427.683.4430.041322
12/5/20033/4/200521.6827.686.0036.041312
8/19/20043/4/200527.1127.680.5736.611136
1/18/20054/20/200530.3524.99-5.3631.25164
1/19/20054/20/200529.6824.99-4.6926.56163
2/24/20058/25/200529.1423.66-5.4821.081127
3/30/20058/25/200527.7723.66-4.1116.971104
7/1/20058/25/200528.9823.66-5.3211.65138
8/25/20057/13/200623.6622.61-1.0510.601221
9/22/20057/13/200621.0122.611.6012.201202
6/22/200610/19/200723.2927.554.2616.461334
7/3/200610/19/200724.7127.552.8419.301327
7/14/200610/19/200723.5527.554.0023.301319
8/16/200610/19/200723.4127.554.1427.441296
11/16/200610/19/200728.8627.55-1.3126.131231
10/10/200711/9/200730.0824.15-5.9320.20122
10/16/200712/21/200729.2223.90-5.3214.88147
12/27/20073/6/200823.3319.07-4.2610.62147
3/6/20086/30/200819.0719.390.3210.94180
10/10/200811/12/200819.9715.27-4.706.24123
10/20/200811/12/200820.1715.27-4.901.34117
11/24/20083/6/200915.5716.450.882.22169
10/15/200911/11/201024.9139.1914.2816.500271
11/30/200911/11/201025.3839.1913.8130.310240


Total Session Units Invested 5099
Sessions In Time Span 2398 Avg. Units Invested 2.13
Unit SharesMarket Order CommissionsStop Order CommissionsProfit
10036 at $5.0018 at $15.00$2,581.00
10036 at $30.0018 at $30.00$1,411.00
100036 at $5.0018 at $15.00$29,859.99
100036 at $30.0018 at $30.00$28,689.99


Today's Free Reports | Meet the Analysts | Member Sign In | Stock-Predictions dot Com Home Page

For Subscribers: Advanced Analysis of the Price Behavior Surface for PetSmart, Inc

Detailed Trading Strategy for PETM :




Contents of non-member pages are delayed. New information may have voided the predictions shown here. Associates of Stock-Predictions.Com or Hybrid Technical may hold positions in issues covered here.

Our Pledge of Independence: We do not utilize any reporting or analysis that comes directly or indirectly from brokerage or banking firms.


Note: Free pages are for entertainment and academic purposes only. We do not advise anyone to buy or sell stocks or funds. We do not recommend the purchase or sale of this or any other issue. Research shows that most people who trade securities will lose money. These reports are not to be used for stock-picking or investment decision support. Any such use is strictly prohibited. Charts are provided by permission from Hybrid Technical. All Rights Reserved. All Content is Copyright 2010 by Stock-Predictions.Com
This site and Hybrid Technical shall not be liable for any errors in the content, or for any actions taken in reliance thereon.