Many noticed in Challenge Chat yesterday 10/30/20 that I was posting adds to a 20% crack off HOD on OTC $CNGT. In on 20% crack off HOD [11:14 $0.0247] 30k 13:36 at $0.0198, add 30k 13:41 $0.0169, add 30k 13:52 $0.0167, and add 30k 14:08 $0.0146 for 120k total at $0.017 avg.
I limit myself to four total buys. This is crazy right? I learned the concept from observing Tim add to a trade, but only once, to improve his average entry price. I TOTALLY AGREE WITH TIM SYKES THAT HOLD AND HOPE IS NOT A STRATEGY! Yet my experience has been that OTC Big % Gainers with High Volume have extra resilience and that this strategy has a surprisingly high probability of success. I noticed many times in my trading history, prior to this strategy, where I would sell a stock for a loss and it would bounce back within a few minutes or the next day.
The rules for this strategy to be successful for me are 1) OTC, 2)Big % Gainer, & 3) High Volume. If those three aren't present, it has low probability of success. Will it be successful for $CNGT? We'll see next week!
How successful is this strategy? My data shows, for the 11 weeks Aug 17 - Oct 30, where I add to failed breakouts or 20% cracks:
Same day Win-Loss = 24-3 = 89%
Next day Win-Loss = 7-0 = 100%
Hold 2+ days Win-Loss = 6-10* = 38%
[*10 are bags that I'm currently holding so BEWARE of holding too long as Tim always says. Since they are mostly strong former OTC runners, they all may be winners eventually. Yet I'll probably sell some for large losses in late December.]