While the trading industry has the tendency to be taken over by negativity and toxicity, Investagrams desire to shed some light by promoting a healthy community among traders. Continuing to encourage the “Tulungan” culture, we are recognizing our most helpful trader of the week: Trend Sniper (@trendsniper).
Since 2017, he has been generous in sharing important information especially to newbie traders – from giving sound advice on having the right attitude, acceptance of failures, and learning from it to sharing his local and global market insights to his fellow traders in the Investagrams platform.
In his recent feed, he still continues to share valuable information about the stock that matters to him and probably matters to his fellow traders, too. What is also worthy of acknowledging is his patience to help his fellow traders understand the implications of the information he shared.
Even with issues about a broker, Trend Sniper generously responded to “Patulong po,” a stress call from a fellow trader.
Dear Trend Sniper, your efforts in helping your Ka-Investa are not in vain. Perhaps in your little ways, you are helping one trader excel and be better in our industry. We hope that you continue to be an active and helpful Ka-Investa.
Your FREE 1-month InvestaPRO access is on the way! Enjoy!
Congratulations to Risky Boy a.k.a. @riskyboy0210 for spotting $PXP (Philex Petroleum Corporation) 7 days before it strongly broke out higher! This trader saw that momentum was starting to build-up and that there could be potential for an impulse move. Based on his chart, he used RSI levels and simple support and resistance to aid in his analysis.
On the daily timeframe, it can be seen that $PXP was forming a higher low with a good amount of volume coming from the bottom. As the stock moved sideways, volatility started to drop. Resistance could be pegged at around the 4.6-4.8 area.
However, by looking at the intraday chart just as @riskyboy0210 did, it can be seen that 4.5 could be a key level to break as selling pressure seems to have moved there especially with volatility gradually decreasing. As the level is broken with good volume, the bullish scenario starts to play out as the 4.5 resistance turns into a support. Just like he said, the break of 4.5 was the start of the momentum play. For those who aren’t familiar, good build-up for bullish momentum often consists of decreased volume and volatility that are coupled with good volume on the breakout and higher lows.
Something else that was used to aid in spotting momentum was the use of the RSI as a breakout indicator. By looking for RSI to make a new high, it can be seen whether or not the breakout was a clean strong move or a choppy one that could be seen as a sign of weakness. To know further about RSI or the Relative Strength Index, you may visit our InvestaDaily article here: A comprehensive guide on how to use the Relative Strength Index (RSI)
Again, we would like to congratulate @riskyboy0210 for being our featured trader for the week (your access to FREE one-month InvestaPrime+ is on its way!) and of course, for snatching a good trade! Happy trading, and always remember to TAYOR!
Sense of Community — this is something that we would love to instill in Investa. We would love to see newbie and experienced traders interact and help each other. No shaming, no hyping or bashing, just learners passionate to learn together and from each other.
With this, we want to acknowledge those traders who have been fervent in their learning. For this week, we want to congratulate Billy a.k.a. @billyverse for being an eager learner that stands out in the Investa Community.
Billy is just a month-old on the platform, yet he shows a distinguishable hunger for learning that inspires newbies like him to be proactive in their trading process.
While he boldly asks around for stocks, books, company info, and other recommendations, he also suggests informative resource materials to guide novice traders in their journey to be, one day, confident in their trading executions.
He takes advantage of the free learning tools available in Investagrams platform. He devours information from InvestaDaily and InvestaLearn to sharpen his skills so he can be a better trader.
“Ask around sa mga bihasa na anong good books to read or video training dito sa @investagrams para un [yung] pera mo hinde maging tuition fee… Kaya un [yung] gigil mo ilagay mo sa pag-aaral then for sure mahit mo din.”
“Ask the experts about which good books to read or the video trainings to watch here in Investagrams so your money will not become your tuition fee… Put your passion on learning to hit your goals,” said Billy in one of his posts about the newbies riding the hype instead of persevering in learning the ropes of the stock market.
Billy’s goal is to reach his first Billion Pesos in less than 20 years. He understands that what he wants is not an easy thing to do. It entails a lot of hard work, yet he is willing to sacrifice his time to learn and practice his craft.
To help you, Billy, achieve your goal, Investa is giving you a month-long InvestaPro access. We hope that you will continue to be hungry for learning and be an inspiration to others to be passionate learners as well.
When Investagrams was just starting out, the social feed was full of analyses of countless traders on different charts. But through the years, our social network aspect of the platform has been an avenue for traders and investors of all levels to share their thoughts, inputs, and analysis on different stocks and recently on different asset classes like Cryptocurrency and Forex.
As we continuously find ways to further improve the platform, our team is also looking on how we can improve the social networking side of the platform. Seeing that majority of the users share their thoughts on different stocks, we believed that a great way to further develop the social feed was to track the analyses posted to see if it would have actually yielded a profit, and at the same time tracking the trade statistics of their posts.
This is why we developed the Investa Forecast.
All you have to do is to input which stock you would like to forecast, the entry price, cutloss, target profit, and recommended position size. Then select the duration of the forecast; if you’re seeing only a short swing on a specific stock the duration can be as short as a few days, and if you’re seeing a medium-term swing then you can set it to a few weeks or months. You can also choose between putting on a long or a short position.
In this example, we forecasted that $ALI would potentially reach our target price of 38.50 by the end of April 2020. The entry price is 33.50 with a stop placed at 31.50, with a recommended position size of 15% of the portfolio. To further explain the forecast, you can add more insights on top for everyone to see.
Once you’re done inputting all the necessary information, simply click ‘POST’ then this is what will be seen on the social feed. Now the other people in the community can also vote if they agree with your forecast, all they need to do is click ‘HIT’ if they agree and ‘MISS’ if they disagree.
Then once you’ve done a good amount of forecasts, you can see your statistics on your profile. You will know your average win/loss percentage, net profit, and hit rate. So aside from your own actual trading, knowing your forecast statistics is also a good way of identifying if your strategy is working well in the current market environment. You can also check the forecast statistics of other traders in the community (see example above).
For our first featured forecaster, we like to give a huge shoutout to Napster a.k.a. @napconmigo who has been actively using the forecast feature this past couple of weeks. One of his recent forecasts was a success in $URC, which yielded him an 8.74% gain, and the stock is still continuing to go up. This was definitely a great spot as $URC has gone up nearly 50% since the $PSEi hit near 4,000 levels.
Bluechips have definitely been the stocks to focus on these past two weeks. After bouncing for falling close to 80 pesos per share, $URC created a consolidation pattern which showed two potential entries. If you position yourself during the consolidation at around 100 pesos, you would’ve been up 21% by today. If you waited for the confirmation of the breakout, you would be up more than 10%.
Again, kudos to Napster a.k.a. @napconmigo for successfully forecasting the short term movement of $URC and for consistently using the Investa Forecast feature. As a reward, we will be crediting 100 Php to your InvestaWallet. For those who would like to be our next Featured Forecasters, simply use the Investa Forecast consistently and keep an eye on your forecast stats.
Welcome to the FOURTH YEAR of Investa Trading League!
Today we present to you another GREAT OPPORTUNITY to hone your trading skills while getting the chance to compete and win awesome prizes.
Investa Trading League is FREE and OPEN TO ALL. For this year’s competition, it will run for two (2) trading weeks from April 27 to May 8, 2020.
How to win the Investa Trading League?
The goal of this trading game is simple. After the first Stage of Investa Trading Grounds (ITG) Competition, each daily winners who were able to reach the TOP 10 DAILY LEADERBOARD from April 13 to April 26 will be added to the TRADING COMPETITION ROOM and they will be part of the Investa League Competition. Find opportunities and trade your best to gain the most profit and have the highest total account value at the end of two (2) trading weeks!
Winners and Prizes:
The top three (3) participants with the highest account value at the end of the trading round will be announced as the winners.
Each league’s winner will receive a corresponding cash prize as follows:
1st Place: Free Basic Ticket to Investa Online Summit | 5 months access to InvestaPro 2nd Place: Free Basic Ticket to Investa Online Summit | 3 months access to InvestaPro 3rd Place: Free Basic Ticket to Investa Online Summit | 1 month access to InvestaPro
MECHANICS
1. Trading League will be accessed through the Investagrams Virtual Trading Platform (https://www.investagrams.com/vTrade) and participants will start with Php 100,000 virtual money to trade.
2. Participants can only trade liquid and actively trading stocks (we have filtered out which stocks fit this criteria) and have taken out illiquid names that have wide spreads that can be easily abused. The whole stock list can be accessed once you are accepted in the competition. The tradable stock list can be changed
3. Upon buying a stock, you can only sell it after 20 minutes. This will protect the competition against ‘rinse-and-repeat’ abuses on illiquid stocks that are not realistically in-line with real market mechanics.
4. To promote diversification, maximum exposure in a single stock can only be 1/3 or 33.33% of the portfolio. This requires the participant to buy at least 3 different stocks should they want to fully invest their portfolio. The system won’t allow you to allocate more than 33.33% in a single stock.
5. Buying and Selling Conditions. Participants now have two options when transacting. The first option is to transact using the current price of the stock and use market orders to buy and sell specific stocks at their real-time prices. The second option is to transact using our new LIMIT ORDERS. By using Limit Orders, you won’t need to watch the market the whole day in order to transact in the market.
Buy – You can buy the same stock multiple times within a day.
Sell – You can only sell the same stock two (2) times in a day. This will be strictly observed in order to avoid abuse. This includes selling in TRANCHES. Example: If you bought 1000 shares of $SMPH at 39 then sold 300 shares at 39.10, then you have only one (1) sell transaction left for $SMPH within the day.
6. Holding period for all stocks
Initially the twenty (20) minute time lock was only for stocks PHP 3.00 and below. However, due to the illiquidity of the market and behavior of some participants, we will now be applying the twenty (20) minute time lock for taking profits to ALL STOCKS. Again, this is to avoid widespread and rinse-repeat trades. There are instances where specific names are simply bought due to the 2-2.5% widespread sold after 5 minutes once the stock has been ticked up.
There will be no timelock or restrictions when selling at a loss.
7. Revision of Tradable Stocks. Investagrams has the right to remove any stock from the list should it suddenly become too illiquid, abusable and/or delisted. Furthermore, Investagrams may also add new stocks on the tradable list as new stocks become more active and tradable in the market. All changes will be announced before implementation.
In such cases that a stock is to be removed, we will follow this process:
Investagrams shall notify all the participants via the Investagrams Platform before the market opens.
If you still have the stock in your portfolio, you can sell it at any point in time at your discretion.
8. For stocks that will be detected by our WIDE-SPREAD DETECTION SYSTEM (WSDS). The Wide-Spread Detection System’s main condition is that the first (1st) best bid and ask should never be more than 2% at any moment during open market session.
Fig 1. Real-time Market Depth / Orderbook showing the first (1st) best bid-ask data.
Example: $ATN (Refer to Fig. 1)
Given:
1st best bid = 1.11
1st best ask = 1.14
Formula:
X = (1st best ask – 1st best bid) / 1st best bid
Condition:
If X is greater than 2% then WSDS detects that the stock is wide-spread and can be abused.
Solution:
X = (1.14 – 1.11) / 1.11 = 0.02700 x 100% = 2.70%
Verdict:
Since X is greater than 2% then the stock is wide-spread as computed by the system.
The participant will be given a prompt that the detected stock is not tradable upon executing a buy or sell transaction.
The stock will again be tradable once the system detects that the spread of the 1st best bids/asks are below 2%.
9. Trading Halt. Stocks that are on a trading halt will not be tradable during the halt and will be tradable again during the announced lifting time.
10. Trading Hours: Weekdays from 9:30AM – 1:00PM (This is the current PH trading hours and will be changed once the enhance community quarantine is lifted. Meaning, you can’t trade during off hours and on weekends.)
11. Participant rankings are constantly updated every 10-minutes and automatically ranked by Investagrams system according to net profit gain/loss.
12. At the end of the competition, the participants with the highest net profits will win. The top 1 to 3 participants shall be announced the official winners.
13. Joining the Investagrams Trading League 2020 means that you agree with all the clauses mentioned above.
Backtesting is an essential part of your trading success.
When you begin your journey in the markets, usually the first thing we look for is a strategy to analyze the stocks or assets we’re trading. We scan through a few articles online, watch a couple of videos, and read countless books to find strategies that have been proven to be successful for other trades. There’s nothing wrong with this process, but it’s often much better to check if the strategy you’re going to use would have worked in the past.
This is where backtesting comes in. When you backtest a strategy, you try to see if the particular strategy would allow you to take advantage of specific opportunities.
For example, if you’re studying a momentum strategy it’s best to check if the strategy would have worked during a bull market and if it allowed you to latch on to the market leaders. In contrast, if you’re backtesting a bottom-fishing strategy then it’s best to practice this during a bear market to see if you would have been able to pick the bottom.
So now the question is, “How many practice trades should I make?” Truth is, you wouldn’t know if a strategy actually works if you only test it out on 10 different occasions. The minimum sample size enough to yield significant results would be at least 100 sample trades per strategy, but the more the merrier.
The problem in the past was there was no backtesting application available to test your strategy in the Philippine market. You would have to do it manually; you would need to manually scroll through the chart, mark when you bought and sold the stock, then jot down the results. This takes out a lot of time and energy.
This is the reason why our Investagrams team developed the Investa Backtest. We wanted to automate the backtesting process that could be used in the Philippine market. Not a lot of traders backtest the strategies they use, many just use a strategy they learned immediately because they found out about it from their mentor or a famous trading book. A big reason why backtesting was not a mainstream thing before was due to the fact that there was no automated way to do it.
But guess what, we weren’t just going to limit our backtester to our local market. You can also backtest your strategies in the GLOBAL ARENA as well! You can test to see if your strategy can fare well in US stocks, Commodities, Cryptocurrency, and Forex! We want traders here in the Philippines to see that there are opportunities that we can take advantage of in the global markets, and backtesting your strategy in different assets is a great way to start.
So now, how do you access and fully utilize the Investa Backtest?
Here’s a spoiler: Backtesting is EASY with this new feature!
Step 1: To find the Investa Backtest, simply login to your Investagrams account then click the multi-tool tab then click “BACKTEST”.
Step 2: You will then be redirected to the Investa Backtest page. We suggest that you set your indicators first then click “START BACKTEST” to begin.
Step 3: Choose the stock where you would like to backtest your strategy and the specific date. Then it will be as if you were taken back in time as if you’re trading the stock during your chosen time period.
Step 4: TRADE! Simply click “NEXT DAY” or click “Q” on your keyboard to make the next candlestick appear, this means the trades you’re making are all end-of-day trades. On the right side of the screen you’ll see the results of your trades. So if you’re backtesting a momentum strategy, $NOW would be a good candidate to practice on as it skyrocketed in a short period of time last January 2018.
Step 4 (continuation): While if you’re backtesting a bottom fishing or reversal strategy, you could trade bluechip stocks back in 2008 during the last market crash. Always remember, don’t just stick to one stock when backtesting a strategy. Choose from a variety of stock until you reach a minimum of 100 samples.
Step 5: Once you’re finished on a particular stock simply click “END BACKTEST” to see the summary of your results. You can jot down everything on a notebook or place it in an excel sheet as you continue to reach 100 or more samples. Then simply click “NEW BACKTEST” to start again on a new stock!
That’s about it! Our tech team made the Investa Backtest as easy as possible for everyone to use so all of us can benefit from the process of backtesting. On a final note, another advantage of backtesting a strategy is you can actually find potential flaws or room for improvement to make the strategy even better.
Start your backtesting here today and use the extra time during the enhanced community quarantine to study and restructure your trading strategy: www.investagrams.com/backtest
He has been a user of Investagrams since June 2017 and has definitely impacted the learning curves of the newbies who are just starting out on their trading journeys. Chart Archer shares, on a constant basis, content created by Investagrams or other traders that can benefit those who are new to the stock market.
Here’s one of Chart Archer’s posts where he shares several pieces of content created by Investagrams specifically catered for newbies. We here at Investagrams aim to be the catalyst to enable 10 million Filipinos to invest in the financial markets, which is why we continuously create content in written, audio, picture, and video format that can help anyone learn about trading the markets. This is why we are extremely grateful to Chart Archer for consistently sharing our content to help others take control of their financial destiny.
Trading the financial markets is a zero-sum game, meaning in order to gain a profit another person will need to lose money or miss out on an opportunity to make money. However, that doesn’t mean there aren’t people who also look to help others take advantage of the ultimate equalizer of wealth. All of us enter the financial markets to achieve financial freedom, but only a few choose to help others along the way. People like Chart Archer are the reason why our community continues to grow and strengthen.
Chart Archer doesn’t only post content created by Investagrams, he also shares the content of other high-level traders as well.
In addition, Chart Archer also posts some of his chart reviews and forecasts on a particular stock that he is monitoring that could help as guidance (but not a recommendation!) for you if you are looking at the same chart as well. See the samples below:
We wanted to keep this feature short and sweet, so THANK YOU Chart Archer for being a big contributor in the health and growth of our community. Without a doubt in our minds, we are sure that you have impacted the lives of many aspiring trades; that’s something to be very proud of.
