How to Use Stockfido
To Use StockFido method effectively it requires a straight forward process to be completed diligently every day. You will need access to your brokerage software. We also recommended that you have smart phone with the application for your brokerage software installed.
StockFido recommends first time traders to you use a virtual or paper-trade platform, such as the one provided by CBOE.com to practice trades each day until you feel comfortable with your brokerage software’s features and that you get training or instruction from that software. The order terminology below is not a 100% standard across all brokerage platforms, but it’s implementation can be very similar. Many brokerage software firms have “practice” mode that you can practice a strategy on a trade to test a method out which provides an excellent way to learn how to trade with your brokerage software.
Brokerage house trading fees can become expensive on short term daily trades so in order to overcome this we recommend a using $10,000 for your initial SF account on your trading platform.
StockFido’s recommendation is based upon a “Buy” at the Open and “Sell” at the Close equity purchase.
One Recommended Trading Procedure
Disclaimer on the StockFido Trading Procedure. This procedure is a general procedure and is not specific to any Trading or Brokerage platform. All StockFido customers are responsible for their own trades and knowing how to use their brokerage software platforms. Stockfido is not liable for any losses incurred from trading platform errors incurred by clients.
- The StockFido daily stock pick is published each day, before 7am Eastern Standard Time (EST)
- With the Pick of the Day selected in your trading software; enter in the quantity of shares you want to buy
- Select a “Buy” “Market Order” with the Time in Force set to “OPG - On the Open” (if this an option in your brokerage software) and execute this order.
- Create a stop loss to protect against a large loss set at 3% of the previous days close price for the StockFido pick of the day
- Select the same stock and select the “Sell” as the action type and select “Stop Loss” as your order type
- Enter in the same number of shares in the quantity as you purchased in your buy order (very important)
- Calculate the 3% Stop Loss price of the previous days close (.97 * close price)
- Enter the same calculated Stop Loss Price value in both the “Stop Trigger” and “Limit Price” fields on the order entry tick
- Under Trade Automation, Select a “Fill Trigger” order and link it to the Buy order just made earlier.
- Check all your information to ensure it is right and then execute the Stop Loss order (Note: This will be listed as “queued” until your buy order is executed.)
- About 3pm get ready for your sell order, the goal is to sell at the close
- About 3pm, delete the standing “Stop Loss” Order because you cannot have a long and short at the same time on the same position. You also want to get your “On the Close” Sell order in by 3:15 so it will get executed. Some trading platforms may not execute it if the order gets in to late or too close to close.
- Select the same stock and select the “Sell” as the action type and select “Market Order” as your order type
- Ensure you have the same number of shares as your buy order
- Under the Time in Force pulldown, select “CLO- On the Close”
- Review your information and ensure correct and then execute the order
We recommend that you use the StockFido pick every day for the best results. StockFido’s picks generate a steady upward growth and is based upon taking your returns and folding them back into the next days pick to achieve incremental compounding growth. If you don’t use this every day you will likely miss out on the beginnings of the breakout market runs.
Here are some characteristics we have observed in our testing of Stockfido
- Use the pick every day regardless of premarket indicators, as consistent use is key to maximizing your returns to increase your growth the fastest.
- Don’t try to out think the algorithm, the algorithm is usually better, let it work for you.
- Leave your emotions out of your trades, Let the algorithms perform!
- The current win rate is about 64%, meaning you generally win 2 out of three trades over a long period of time.
- The performance during flat market periods can be flat as well, but StockFido really excels in periods of high volatility, such as during the recovery period after the Jan-Feb Chinese Market/Oil instability and the post US election “Trump” rally
- During periods of negative SP500 returns, Stockfido has experienced down periods as well but they have been muted to lesser degree than the SP500