Welcome to Channellines!

Channel lines started as a pure technical analysis site based off traditional technical analysis of trendlines and their paired parallels. All technical analysis patterns and principals are based off channels (inclining and declining trading ranges) and their interaction with other channels of different slope or time frame.

I took it one step further. The "why" behind technical analysis! Why does it work, why does it not work? Is there a better way to play the markets and be more consistantly correct and profitable? There sure is. All based off the principal of providing liquidity, or taking the "other" side of the trade.

This site is now taking a different direction, we (my trading partner(s)) and I, are using this site more as a trading journal. We will list our positions, in part, and discuss various topics and thoughts throughout the trading day. I encourage the learning process, not relying on a crutch to help you with your trading. The primary purpose of the blog will be just a place for us to write down ideas and thoughts, not to educate (although we will, some), not to assist in your acquirment of monetary gain, but a place to interact with other market participants. My name is George Swanson, also know as Winace. My trading partners/account owners are present, I will allow them to present themselves and reveal whatever of their identity they are comfortable with. Enjoy the trading day, I wish you the best in your market journey.


Tuesday, December 9, 2008

Sorry!

I apologize for being gone all day! I did not take a single trade, there where no triggers which fit what I was looking for. I spent most of the day working on a new trade matrix utilizing non-linear price entries as compared to exponential position sizing. This allows you to use the same "lot" size for every entry. It is also more cost efficient and suitable for heavily extended individual stocks. I will start preliminary testing on this matrix, combined with playing securities (Huh? What? Me? Not ETFs???). The major ETFs offer stability, the securities offer higher percentage gains with less capital allocation for the entire trade. I can also implement hedging by building simultaneous short and long holdings. I will start with 10 trades going on at one time, the test will need to have ALL TEN positions (half short, half long)exit in the green for me to consider this test successful. The average trade will be around 10K and have a risk:reward ration around 2.5:1 with a high 90's percentage of successful execution.

As far as todays action was concerned, nothing exciting, no deep extension up or down, and nothing heavily extended into the close. Currently I am 100% in cash. I'll attempt posting my 10 trial positions as I enter them. At least, when I enter them. Have a good night!

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