Long CAVA @84.31
Updated
I love this one so I reached just a little at the strong open this morning.
Oversold in a VERY strong 9 month uptrend.
If you follow me you know the drill:
Oversold, keep buying 1 lot as long as it stays oversold and sell each lot as it becomes both overbought AND profitable.
Indicator and strategy paired with CAVA are 23-4* in the last 12 months (the 4 "losses" are open trades from the most recent signal that hasn't reached the goal yet). I just discovered the stock and crunched the numbers this weekend so my first actual trade in this ticker is this one, but I bought a quadruple lot since it's been oversold for 4 consecutive trading days.
The stats below include pricing the 4 "losses" at the closing price from Friday as negative return closed trades. As of this moment the numbers would be better since the stock is up from my entry price.
Average win = +7.5%
Median win = 9.34
Total return last 12M = 2.01x lot (201% of the lot size you're trading)
The only downside is that early in the 12 month lookback, it was in a downtrend and several trades took months to close, so the average holding period per lot is 36 days because of that. These trades don't always work out immediately. That said, the last ten trades have had a holding period on average of 7 days which is a very quick turnaround for this type of trade.
The holding period on trades matters. When the money is tied up in a trade for 6 months, it can't be used for other trades that could make money more quickly. That's the big drawback of buy and hold in my opinion, even if you pick the stocks well (something professional money managers can't do well enough to outperform the indexes consistently).
All that said, the recent performance of CAVA suggests a fairly quick turnaround on the trade. We shall see.
As always - this is fiscal entertainment. My trades are mine and not presented as investment advice. If you choose to trade along with me, it's your responsibility if the trade goes sideways on you. But if you do trade it, I hope you make money, because that means I'm making it too. :)
I'll add updates if I add or sell lots.
Oversold in a VERY strong 9 month uptrend.
If you follow me you know the drill:
Oversold, keep buying 1 lot as long as it stays oversold and sell each lot as it becomes both overbought AND profitable.
Indicator and strategy paired with CAVA are 23-4* in the last 12 months (the 4 "losses" are open trades from the most recent signal that hasn't reached the goal yet). I just discovered the stock and crunched the numbers this weekend so my first actual trade in this ticker is this one, but I bought a quadruple lot since it's been oversold for 4 consecutive trading days.
The stats below include pricing the 4 "losses" at the closing price from Friday as negative return closed trades. As of this moment the numbers would be better since the stock is up from my entry price.
Average win = +7.5%
Median win = 9.34
Total return last 12M = 2.01x lot (201% of the lot size you're trading)
The only downside is that early in the 12 month lookback, it was in a downtrend and several trades took months to close, so the average holding period per lot is 36 days because of that. These trades don't always work out immediately. That said, the last ten trades have had a holding period on average of 7 days which is a very quick turnaround for this type of trade.
The holding period on trades matters. When the money is tied up in a trade for 6 months, it can't be used for other trades that could make money more quickly. That's the big drawback of buy and hold in my opinion, even if you pick the stocks well (something professional money managers can't do well enough to outperform the indexes consistently).
All that said, the recent performance of CAVA suggests a fairly quick turnaround on the trade. We shall see.
As always - this is fiscal entertainment. My trades are mine and not presented as investment advice. If you choose to trade along with me, it's your responsibility if the trade goes sideways on you. But if you do trade it, I hope you make money, because that means I'm making it too. :)
I'll add updates if I add or sell lots.
Comment
Forgot to update after the close yesterday, things got hectic around here after the market closed. It was oversold so I added another lot at 79.79.Trade closed manually
Overbought, so I sold all 5 lots (original 4x lot @ 84.31) and added lot (79.99) at the close. 4x lot was sold for a +7.1% return in 19 days and the final lot was a +12.88% gain in 16 trading days.
Overall now 27-0 in the last 13 months on CAVA.
Average return = +8.6%
Median = 7.05%
Total return = 2.4x lot size
Comment
Trade results for this idea (for my accounting purposes)
Wins: 5 Losses: 0
+7.1% in 19 days (x4)
+12.9% gain in 16 days
Average gain = +8.26%
Avg days held = 18.4 days
Per lot per day held annualized return = +113.1%
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