Tuesday, May 31, 2011

Crocs (CROX)

Since my first long signal back in October 2006 (when the stock was trading at $19.44) through the end of last week, Crocs is up just 17.6%.

But using the Volatility System to trade the stock over the same time period has brought a total return on investment of 4,219.2%.  



1. LONG the week of 10.9.06 at $19.44. Using $14.31 for my stop, the initial risk (R) was $5.13. Stopped out and reversed to short at $47.52 the week of 10.29.07. The percentage gain on the trade was 144.4%, and the reward-to-risk ratio was $28.08/$5.13 = 5.47.

2. SHORT the week of 10.29.07 at $47.52. My stop was $77.67, so R = $30.15. Stopped out and reversed to long the week of 5.4.09 at $2.52. The percentage gain on the trade was 94.7%, and the reward-to-risk ratio was $45.00/$30.15 = 1.49.

3. LONG the week of 5.4.09 at $2.52. I used $0.47 for a stop, so the risk on the trade was just $2.05. Closed last week at $22.87 with a $17.37 stop. The percentage gain on this trade is 807.5%, and the reward-to-risk ratio is $20.35/$2.05 = 9.94.

Bottom Line:
Winning Trades: 3 | 100.0% | $31.14/share avg.
Losing Trades: 0 | 0.0% | -$0.00/share
Average Trade: Gain of 348.9% | $31.14/share | Reward-to-Risk Ratio (R): 5.64

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