Thanks for this content, it's great. For others here, how do you handle entries if you cannot be active during the day? Makes spotting earnings EPs after hours very easy, but the 5min ORH entry is obviously not an option. Anyway have any suggestions?
Hey, thanks for your comment! Good question, and I can repost it on my Twitter, if you like, to see if other people give different answers, but here's mine.
--
I fear that if you really can't be at your computer around the 9-10 am EST mark, I just don't think that trading EPs is your strategy. I wish I could give a different answer, but I really think that this is the reality of it. Just being at your screen after market hours isn't enough for this one - some stocks simply don't start gapping until the pre-market, or the gaps post-market may look very different by morning. Moreover, volume is key in EPs, and volume reads just before and after the open are much more accurate than the night before.
--
The thing is, there are many different ways of making money in the market. Practically by definition, no two edges are exactly the same. If you look at how Kristjan trades vs Pradeep (Stockbee), for example, who was a mentor to him, there are clear differences between them, even if Kristjan has clearly also taken on board some lessons by Pradeep. (Might do a separate stack on this in future, by the way.)
--
Everyone has a different personality, not to mention different circumstances, so needs to find what works for THEM, and them alone. By all means, learn from and study the greats, but at the end of the day, you need to take on board the lessons that work and discard what doesn't (for you). Trading EPs can make big bucks, even if you only trade an hour a day, but only if that hour is the correct one. That's from what I've seen, at least.
--
I know that answer is probably not what you want to hear. But the good news is that I believe there are strategies that do work by looking at charts after hours, then putting in stop-limit orders, with stop losses attached to them. This can work particularly well if you trade off daily and weekly charts; trading O'Neil-style breakouts, for example.
--
I also want to say that many of the lessons Kristjan teaches are applicable no matter how you trade, or apply if you do any sort of trend-following. They frequently align, especially in their core principles, to lessons taught by many other greats, including O'Neil and his students. In fact, when I first noticed (a few years ago now) just how many successful traders traded in a similar way, that's what made me realise that I needed to take a similar approach if I was going to be consistently profitable in the markets. Also made me realise I needed to switch to US markets, incidentally (I'm in the UK).
--
I hope some of that helps, and let me know if I need to clarify anything (bearing in mind I'm less active online right now, as I'm on holiday).
Thanks for that reply. I would be interested if your Twitter followers have any ideas / suggestions.
I'm convinced it's achievable for EEPs (being Earnings EPs), although would have to forego biotechs most likely.
These EEPs tend to have sustained moves rather than one or two day pops like many FDA announcements and the like tend to have, although underlying market conditions need to be favourable.
I've toyed with:
1. Buying the open the day after the EEP
2. Waiting for a couple of consecutive closes above the EEP day close and buying
3. Waiting for a visit to the 10EMA after an EEP
4. If price breaks down below the EEP day close or low, buy as price crosses back above the EEP low or close
It's not as clean and clear-cut as buying the ORH break on a 5 min chart on the EP day, but such short time frames are a relatively new-ish phenomenon.
Check out @Scot1andT on twitter and google Scot1and Fish Hook setup. This is essentially a setup with criteria on how to enter on the second (third or fourth if it fits the criteria) day of an EP.
Thanks for the comment, Matt! Don't worry: I'm in the process of writing a stack about the Excel-based quantitative analysis, but I'm currently prioritising stream notes. Just to clarify though: I'm not sharing a spreadsheet with you all; just the principles of the techniques themselves.
--
My intention is to show you all HOW you can do it, then you're equipped with the knowledge to apply those techniques to your own journals. That gives you the freedom to look at whatever variables you want. I simply want to spark ideas, just as another trader sparked them for me (Tom Dante in one of his videos).
--
Even better is if a few of you then leave comments on new ideas we can all try out and benefit from!
Great summary.
I am wondering if I can search "Up X-% in Y days for last 6 months" on tradingview. I would like do deep dive on EP.
Thank you. And I imagine that's possible, but I'm afraid I don't use TradingView, so am not sure about the specifics.
This is so easy to read! You do an amazing job breaking it all down and presenting it clearly. Thank you so much :)
Fantastic to hear! Thank you :)
Thanks for this content, it's great. For others here, how do you handle entries if you cannot be active during the day? Makes spotting earnings EPs after hours very easy, but the 5min ORH entry is obviously not an option. Anyway have any suggestions?
Hey, thanks for your comment! Good question, and I can repost it on my Twitter, if you like, to see if other people give different answers, but here's mine.
--
I fear that if you really can't be at your computer around the 9-10 am EST mark, I just don't think that trading EPs is your strategy. I wish I could give a different answer, but I really think that this is the reality of it. Just being at your screen after market hours isn't enough for this one - some stocks simply don't start gapping until the pre-market, or the gaps post-market may look very different by morning. Moreover, volume is key in EPs, and volume reads just before and after the open are much more accurate than the night before.
--
The thing is, there are many different ways of making money in the market. Practically by definition, no two edges are exactly the same. If you look at how Kristjan trades vs Pradeep (Stockbee), for example, who was a mentor to him, there are clear differences between them, even if Kristjan has clearly also taken on board some lessons by Pradeep. (Might do a separate stack on this in future, by the way.)
--
Everyone has a different personality, not to mention different circumstances, so needs to find what works for THEM, and them alone. By all means, learn from and study the greats, but at the end of the day, you need to take on board the lessons that work and discard what doesn't (for you). Trading EPs can make big bucks, even if you only trade an hour a day, but only if that hour is the correct one. That's from what I've seen, at least.
--
I know that answer is probably not what you want to hear. But the good news is that I believe there are strategies that do work by looking at charts after hours, then putting in stop-limit orders, with stop losses attached to them. This can work particularly well if you trade off daily and weekly charts; trading O'Neil-style breakouts, for example.
--
I also want to say that many of the lessons Kristjan teaches are applicable no matter how you trade, or apply if you do any sort of trend-following. They frequently align, especially in their core principles, to lessons taught by many other greats, including O'Neil and his students. In fact, when I first noticed (a few years ago now) just how many successful traders traded in a similar way, that's what made me realise that I needed to take a similar approach if I was going to be consistently profitable in the markets. Also made me realise I needed to switch to US markets, incidentally (I'm in the UK).
--
I hope some of that helps, and let me know if I need to clarify anything (bearing in mind I'm less active online right now, as I'm on holiday).
PS - enjoy your holiday :-D
Thanks for that reply. I would be interested if your Twitter followers have any ideas / suggestions.
I'm convinced it's achievable for EEPs (being Earnings EPs), although would have to forego biotechs most likely.
These EEPs tend to have sustained moves rather than one or two day pops like many FDA announcements and the like tend to have, although underlying market conditions need to be favourable.
I've toyed with:
1. Buying the open the day after the EEP
2. Waiting for a couple of consecutive closes above the EEP day close and buying
3. Waiting for a visit to the 10EMA after an EEP
4. If price breaks down below the EEP day close or low, buy as price crosses back above the EEP low or close
It's not as clean and clear-cut as buying the ORH break on a 5 min chart on the EP day, but such short time frames are a relatively new-ish phenomenon.
Check out @Scot1andT on twitter and google Scot1and Fish Hook setup. This is essentially a setup with criteria on how to enter on the second (third or fourth if it fits the criteria) day of an EP.
Thanks I'll check it out. Gotta say the Fintwit community is one of the best out there. So many people willing to share
List in the post is great, thank you so much for your work
Thanks, Edda!
Great write up. Would love the Excel sheet as well that you mentioned.
Thanks for the comment, Matt! Don't worry: I'm in the process of writing a stack about the Excel-based quantitative analysis, but I'm currently prioritising stream notes. Just to clarify though: I'm not sharing a spreadsheet with you all; just the principles of the techniques themselves.
--
My intention is to show you all HOW you can do it, then you're equipped with the knowledge to apply those techniques to your own journals. That gives you the freedom to look at whatever variables you want. I simply want to spark ideas, just as another trader sparked them for me (Tom Dante in one of his videos).
--
Even better is if a few of you then leave comments on new ideas we can all try out and benefit from!
Thanks so much, im interested in your quantitative analysis techniques for Excel
Noted! A few people have said that now, so it's on the list :)
Yes pls look the stake do the same on indian markets if possible
I don't trade Indian markets. But there are always certain things universally applicable, e.g. https://tradingresourcehub.substack.com/p/deliberate-practice-shortcut-manual-effort
Kyna momemtum is universal right supply demands in equity is quite the same in all equity markets