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No. of Recommendations: 2

I have developed and fine tuned this system over the past year, playing around with various techniques for stop loss strategies, diversification, percentages of longs vs shorts, etc. etc..

Before I joined TMF a year ago, I was basically a LTBH investor, but also played around with options where I also had some success. Due to the bull market of the 90's, I have done quite well, but I had a terrible 2000. I have done well since I started using this system in early 2001, but I don't have specific records separate for this system. The problem is I have played around with numerous systems, and have done quite of bit of day trading (which I don't recommend). My guess from looking at some trades I have done, is around 37% return this year.

However, I recommend you use the specific system and look at a specific chart for a particular stock. Determine when you would have bought and at what price (using my system). Then, after any stock rises 10%, start adjusting you stop loss orders upward. I use different stop loss orders for stocks with different beta's (anywhere from 8-12%), but for the sake of a back test, just use 10%. Then run the numbers.

I'd be happy to go through a particular stock exercise with you via email, instead of taking up the boards space.

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