Summary of Closed Positions: 12/07/2006
In 2003 we adding the Hop&Pop trading concept with the
difference from the Breakout Strategy being to hold positions
for a longer time period to achieve superior returns. We added
in Flop & Drop as a complimentary short side approach. In late
2003 it was clear the market was over extended and our level of
aggression dwindled. Moving through 2005 we moved more towards
just recommending stocks to trade and moved away from the
"catchy" labels. The results table below shows all trading that
would be considered Hop & Pop, Flop & Drop, and all other trade
recommendations.
From April 2003 through late November 2006, there are 247
trades. 141 or 57% made money with an average gain of 14.4% for
all 141 winners. 105 or 42% of the trades lost an average of
7.5%. 164 trades are longs and 83 are shorts. Since the market
has been moving higher since April 2003, the longs have
performed much better than the short. However, in May 2006, we
put on a number of very good short trades.
The chart below shows a portfolio trading simulation following
our stock recommendations vs. the S&P 500. The simulation is
based on a portfolio where 10% of equity is put into each
trade. In spring 2003 a maximum of 20 positions were held
requiring a fully margined account. I have always been of the
opinion that when the market is being generous you need to take
what the market is giving. In difficult times, breaking even is
ok. It is clear that since 2003 we have done an excellent of
taking advantage of a generous market in mid-2003, late 2004,
and again in the Spring of 2006.
|
Summary as of late November 2006 |
| Total Trades: |
247 |
Win Pct |
| Wins: |
141 |
57.1% |
| Losses: |
105 |
42.5% |
| Average Gain: |
14.4% |
| Average Loss: |
-7.5% |
| 164 Longs
Average: |
6.4% |
| 83 Shorts
Average: |
2.2% |
Jim Patterson
| 
