Sunday, July 22, 2012

Aruba Networks (ARUN)

BUY signal the week of 1.30.12 at $23.86. My first stop was $16.44, so my risk (R)/share was $7.42. Stopped out at $16.55 the week of 5.7.12. The percentage loss on this trade was -30.6%, and the reward-to-risk ratio was -$7.31/$7.42 = -0.99.

The good news here (and it's a real stretch to say there is any good news here), is that my 1% risk model restricts a terrible trade like this one to just a 1% overall portfolio loss.

History (beginning in 2007):
Winning Trades: 1 | 33.3% | +$19.68/share avg.
Losing Trades: 2 | 66.7% | -$4.77/share avg.
Average Trade: +137.1% | +$3.38/share | Reward-to-Risk (R): +3.02

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