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INTERPRETATION OF DAILY BUY/SELL
SIGNAL REPORT OF STRATSTAR GENIUS TRADER, STRATSTAR MIDCAP MONITOR & STRATSTAR
FUND WIZARD 1) Scrip : This column indicates
the name of the company 2) Price (CMP) : This column indicates
the closing price of the scrip on the day the report was generated.
3) Indicator : This column is the current indicator which changes to BUY
or SELL as on the current date. The current indicator column indicates a change
in signal compared to the previous signal. If this column is blank, then it
indicates that there has been no change in the signal and the previous signal
(the next three columns) holds good and the investor/trader should hold on to
his buy or sell position If there is a change in the signal then the
investor must square up his previous position and should take a fresh new position
in that scrip with the current signal in mind. For e.g. If ACC gave you a
SELL signal on 2nd May 2007 at Rs. 200 and the investor sold 100 shares
on this date, and then Stratstar System gave you a BUY signal on 25th May
2007 at Rs. 114, then the investor should square up his 100 shares which he had
sold earlier and BUY additional 100 shares and hold on to it till the next SELL
signal is generated. 4) Date : This column is the date on which
the last signal was generated 5) Price : This column indicates
the closing price of the scrip on the day the last signal was generated.
6) Indicator : This column indicates the previous signal which may
be BUY or SELL. The previous signal holds good till a fresh signal is generated
for the same scrip. 7) Open Position @ C.M.P. : This column is
the Open Position column and this shows the Profit or Loss the investor has made
on ONE share after following the system at Current Market Price. 8)
% Rise / Profit @ C.M.P. : This column is the Percent Rise column, which
indicates the percentage profit the investor has made from last signal to present
day at Current Market Price. This will appear only if the scrip has appreciated
by 10 or more than 10%. 9) Stop Loss : This column is the Stop
Loss column. The stop loss is an early indicator of a probable trend change. While
it would be optimal to follow the signals only on the confirmation of trend change,
a stop loss could be used as a risk control mechanism suggesting partial liquidation
of position. 10) Remark : This column is a visual representation
of the Percent Rise column. Each '®' represents a 10% profit in a scrip. While
a 100% or more. rise will be denoted by 10 Asteriks ( **********). Sometimes
the remark column will show a comment, 'Whipsaw'. When the system gives signals
on two consecutive trading days for the same scrip, i.e. a BUY signal on one day
and SELL signal on the next trading day or vice-versa, then it is called a whipsaw.
Whipsaw is a bad signal which always results in a loss, and occurs during sideways
trading market or when the markets display extreme volatility. NOTE:
C.M.P. denotes Current Market Price.
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