To be perfectly honest, saying that my 4 Acme Packet trades have averaged 293.9% is a lot like saying Warren Buffett and I have an average net worth of $25 billion...
1. SHORT the week of 2.4.08 at $8.16. With my stop at $12.60 the initial risk (R) on the trade was $4.44. Stopped out and reversed to long the week of 9.15.08 at $7.54. The percentage gain on the trade was 7.6%, and the reward-to-risk ratio was $0.62/$4.44 = 0.14.
3. SHORT the week of 10.6.08 at $4.10. Using $7.59 for a stop, the R was $3.49. Stopped out and reversed to long the week of 3.9.09 at $5.39. The percentage loss on the trade was -31.5%, and the reward-to-risk ratio was -$1.29/$3.49 = -0.37.
Bottom Line:
1. SHORT the week of 2.4.08 at $8.16. With my stop at $12.60 the initial risk (R) on the trade was $4.44. Stopped out and reversed to long the week of 9.15.08 at $7.54. The percentage gain on the trade was 7.6%, and the reward-to-risk ratio was $0.62/$4.44 = 0.14.
2. LONG the week of 9.15.08 at $7.54. The stop was $4.42, so R = $3.12. Stopped out and reversed to short at $4.10 the week of 10.6.08. The percentage loss on the trade was -45.6%, and the reward-to-risk ratio was -$3.44/$3.12 = -1.10.
3. SHORT the week of 10.6.08 at $4.10. Using $7.59 for a stop, the R was $3.49. Stopped out and reversed to long the week of 3.9.09 at $5.39. The percentage loss on the trade was -31.5%, and the reward-to-risk ratio was -$1.29/$3.49 = -0.37.
4. LONG the week of 3.9.09 at $5.39. My stop was $2.89, so the R = $2.50. Closed last week at $72.50 with a $53.07 stop. The percentage gain on this trade is 1,245.1%, and the reward-to-risk ratio is $67.11/$2.50 = 26.86.
Bottom Line:
Winning Trades: 2 | 50.0% | $33.87/share avg.
Losing Trades: 2 | 50.0% | -$2.37/share avg.
Average Trade: Gain of 293.9% | $15.75/share | Reward-to-Risk Ratio (R): 6.38
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