31 December 2007
LKB HSI Warrant Trading System
By Canslim - http://www.canslim.sg/?p=13
An intro of warrant types
There are 2 major types of warrants. The first is corporate warrants and it is issued by the corporations mostly attached to an offering of bonds or right issues. The second type is the covered warrants which is issued by the third party and mostly by financial institutions.
Unlike corporate warrants the exercise of covered warrants will not result in dilution of earnings in the company since there is no new shares will be issued.
On this topic the word warrants refers to covered warrants. And to understand more of the warrants you can refer to educational section of the warrant issues. As an example Macquarie offers a comprehensive education section about covered warrants.
LKB HSI Warrant Trading System
What is actually LKB HSI warrant trading system?
LKB refers to the author (Lee Kok Beng) who publishes his warrant trading system in CNA forum and HSI refers to the underlying instrument Hang Seng Index.
His strategy is very simple and the duration of the trading is very short term.
His strategy capitalizes the DJIA futures and sentiment of European market with the expectation the sentiment will be carrying over to the end of trading hour.
Here is an example of buying a call warrant:
The DJIA futures is up 50 points and all the European indices are trading in the positive territory, the LKB system will open a HSI call position 15 minutes before Singapore market closing (4:45PM SGT) and carrying over the position to the next trading day. The system stresses the discipline of closing all the open position on the next trading day. For this example if the US indices close positive the system allows you to find best profit-taking anytime before 10AM SGT (before opening of Hong Kong Exchange) but if the US indices close against your position you need to close the position immediately at opening bell of Singapore Exchange (9:00 AM SGT).
Here are the steps to be taken to open a position:
Check DJIA futures and European market whether they move in the same direction at 4:40-4:45 PM SGT
If not (example US red while European are green or vice versa) then stay sideline.
If both markets are in sync then check the DJIA futures value and move on the step 3.
If DJIA futures is >+30 points then buy HSI call warrants
if DJIA is <-30 points then buy HSI put warrants. If the DJIA value is between -30 and 30 points then stay sideline.
Here are the steps to be taken to close a position:
Check the US market overnight closing before Singapore market opens.
If you’re wrong (the market against you) then cut loss immediately at the opening bell at 9:00 AM.
If you’re right (market moves in your favor) then you may hold the position til 9:30 AM or later to take the ride from advancing/declining HSI indices.
If the market doesn’t move much it’s preferably to close position immediately once you’re break even.
Important References:
Hong Kong Exchange trading hours: from 10:00am to 12:30pm and from 2:30pm to 4:00pm
Singapore Exchange trading hours: from 9:00am to 12:30pm and from 2:00pm to 5:00pm
DJIA Futures - http://money.cnn.com/data/premarket/
European Indices - http://finance.yahoo.com/?u/
By Canslim - http://www.canslim.sg/?p=13
An intro of warrant types
There are 2 major types of warrants. The first is corporate warrants and it is issued by the corporations mostly attached to an offering of bonds or right issues. The second type is the covered warrants which is issued by the third party and mostly by financial institutions.
Unlike corporate warrants the exercise of covered warrants will not result in dilution of earnings in the company since there is no new shares will be issued.
On this topic the word warrants refers to covered warrants. And to understand more of the warrants you can refer to educational section of the warrant issues. As an example Macquarie offers a comprehensive education section about covered warrants.
LKB HSI Warrant Trading System
What is actually LKB HSI warrant trading system?
LKB refers to the author (Lee Kok Beng) who publishes his warrant trading system in CNA forum and HSI refers to the underlying instrument Hang Seng Index.
His strategy is very simple and the duration of the trading is very short term.
His strategy capitalizes the DJIA futures and sentiment of European market with the expectation the sentiment will be carrying over to the end of trading hour.
Here is an example of buying a call warrant:
The DJIA futures is up 50 points and all the European indices are trading in the positive territory, the LKB system will open a HSI call position 15 minutes before Singapore market closing (4:45PM SGT) and carrying over the position to the next trading day. The system stresses the discipline of closing all the open position on the next trading day. For this example if the US indices close positive the system allows you to find best profit-taking anytime before 10AM SGT (before opening of Hong Kong Exchange) but if the US indices close against your position you need to close the position immediately at opening bell of Singapore Exchange (9:00 AM SGT).
Here are the steps to be taken to open a position:
Check DJIA futures and European market whether they move in the same direction at 4:40-4:45 PM SGT
If not (example US red while European are green or vice versa) then stay sideline.
If both markets are in sync then check the DJIA futures value and move on the step 3.
If DJIA futures is >+30 points then buy HSI call warrants
if DJIA is <-30 points then buy HSI put warrants. If the DJIA value is between -30 and 30 points then stay sideline.
Here are the steps to be taken to close a position:
Check the US market overnight closing before Singapore market opens.
If you’re wrong (the market against you) then cut loss immediately at the opening bell at 9:00 AM.
If you’re right (market moves in your favor) then you may hold the position til 9:30 AM or later to take the ride from advancing/declining HSI indices.
If the market doesn’t move much it’s preferably to close position immediately once you’re break even.
Important References:
Hong Kong Exchange trading hours: from 10:00am to 12:30pm and from 2:30pm to 4:00pm
Singapore Exchange trading hours: from 9:00am to 12:30pm and from 2:00pm to 5:00pm
DJIA Futures - http://money.cnn.com/data/premarket/
European Indices - http://finance.yahoo.com/?u/
Labels: Stock Trading System
Live Trading Records for 24 Dec 07, Mon
C3PW STIdbkECW080303 sold .27 / .28 / .29, +12.0%
EA3W STIsgaECW080328R sold .365 / .365 / .37, +6.3%
D6NW HSImblECW080130Q sold .70 / .715 / .725, +15.1%
Live Trading Records for 25 Dec 07, Tue
Public holiday - Christmas
Live Trading Records for 26 Dec 07, Wed
Cosco bot 5.98, testing new system
SGX bot 13.36, -do-
Live Trading Records for 27 Dec 07, Thu
NOL bot 4.06
YZJ bot 2.00
Capitaland bot 6.42
Gent bot .685
Live Trading Records for 28 Dec 07, Fri
DK8W HSIsgaEPW080130T bot .41, sold .375, -8.5%
DY4W STIbnpEPW080228R bot .165, sold .165, +-0.0%
F&N bot 5.74
C3PW STIdbkECW080303 sold .27 / .28 / .29, +12.0%
EA3W STIsgaECW080328R sold .365 / .365 / .37, +6.3%
D6NW HSImblECW080130Q sold .70 / .715 / .725, +15.1%
Live Trading Records for 25 Dec 07, Tue
Public holiday - Christmas
Live Trading Records for 26 Dec 07, Wed
Cosco bot 5.98, testing new system
SGX bot 13.36, -do-
Live Trading Records for 27 Dec 07, Thu
NOL bot 4.06
YZJ bot 2.00
Capitaland bot 6.42
Gent bot .685
Live Trading Records for 28 Dec 07, Fri
DK8W HSIsgaEPW080130T bot .41, sold .375, -8.5%
DY4W STIbnpEPW080228R bot .165, sold .165, +-0.0%
F&N bot 5.74
Labels: Live Trading Records
23 December 2007
Live Trading Records for 26 Nov 07, Mon
no trading.
no bottom formations seen yet. for such a huge correction, it is impossible for the market to stage a significant rebound or to reverse direction without a solid bottom formation being in place.
Live Trading Records for 27 Nov 07, Tue
no trading.
STI no buy signal yet.
Live Trading Records for 28 Nov 07, Wed
Bread bot .60
Live Trading Records for 29 Nov 07, Thu
Gent short covered .685, -1.5%, both shorts failed.
Live Trading Records for 30 Nov 07, Fri
SPH bot 4.54 on closing match
Live Trading Records for 03 Dec 07, Mon
BH Global bot .80, stopped .76, -5% , something seriously wrong, low .685
Live Trading Records for 04 Dec 07, Tue
Chartered shorted 1.03
Live Trading Records for 05 Dec 07, Wed
China HongX added .91, tg 1.16-1.22, placement completed at 1.18 per share, 29.7% higher than .91 - are the institutional investors fools?! why didn't they buy directly from the secondary market?
http://www.listedcompany.com/ir/chinahongxing/newsroom/CHX_Announcement_Completion_3Dec07.pdf
Pac Andes bot .64, tg .75-.79
China Energy bot 1.31, tg 1.45-1.55
Sino Env bot 2.26
YZJ bot 2.07, tg 2.36-2.48
Mandarin bot 2.10
Sino Tech bot 1.16
C3PW STIdbkECW080303 bot .465, one of the largest volume CW, US futures and Europe green green
DA9W STIsgaECW080130P bot .405, partially filled
Celestial bot 1.24
Orchard bot 1.66
Live Trading Records for 06 Dec 07, Thu
Sunvic bot .31
HG M bot .485
UOL bot 4.56
DA9W STIsgaECW080130P sold .445, +9.9%
C3PW STIdbkECW080303 sold .49, +5.4%
GoldenAgri bot 2.07
CapMall bot 3.26
Pine bot .32
Lian bot .72
China Oil Field bot .95
China New Town bot .665
Aztech bot .33
Alantac bot .25
NOL bot 4.36
Marco Polo bot .365
CG bot .54
Aqua bot .48
Allgreen bot 1.56
YZJ added 2.13
Kim Eng bot 2.29
Broadway bot 1.13
Foreland bot .585
Venture bot 13.6
Courage M bot .42
Jade bot .31
Sinostar bot .615
Noble bot 2.36
UMS bot .38
Asia Env bot .84
Cacola .435
MTQ bot .71
HSIsgaECW080228 bot .33
Mermaid bot 1.86
Live Trading Records for 07 Dec 07, Fri
GoldenAgri added 2.10 on match, breakout
China Sun bot .54 on match, breakout
YZJ added 2.16, breakout
Pan Hong bot .90, potential breakout (not realised as expected)
HSIsgaECW080228 sold .27, -18.2% , heavy loss due to greed, there were opportunities to sell at around .35 in the morning
Live Trading Records for 10 Dec 07, Mon
no trading.
Live Trading Records for 11 Dec 07, Tue
Allgreen sold 1.62, +3.8%, JPM downgraded, 1 year tg 1.34, normally angmo brokerage powerful
D3UW HSImblECW080130P bot .41
Live Trading Records for 12 Dec 07, Wed
Jade sold .275, -11.3%
Venture sold 12.9, -5.1%
UOL sold 4.66, +2.2%
UMS sold .375, -1.3%
SPH sold 4.52, -0.4% excluding div 0.19 per share
Sinostar sold .58, -5.7%
Sinotech sold 1.10, -5.2%
Sinoenv sold 2.19, -3.1%
Pine sold .30, -6.3%
Pac sold .625, -2.3%
Orchard sold 1.66, +/-0.0%
NOL sold 4.38, +0.5%
MTQ sold .71, +/-0.0%
Lian sold .76, +5.6%
Kim Eng sold 2.23, -2.6%
HG sold .48, -1.0%
CourageM sold .41, -2.4%
ChinaOilF sold .885, -6.8%
ChinaNT sold .66, -0.8%
ChinaHX sold .99, -6.1%
Capmall sold 3.28, +0.6%
Bread sold .63, +5.0%
Asia Env sold .855, +1.8%
Aqua sold .48, +/-0.0%
Noble sold 2.40, +1.7%
GoldenAgri sold 1.90, -9.1%
YZJ sold 2.04, -3.9%
China Fish sold 1.84, +28.7%
HSImblECW080130P sold .35, -14.6%
6 net losers (loss>5%) after deducting 3 winners (profit>5%)
Live Trading Records for 13 Dec 07, Thu
Alantac sold .22, -12.0%
Mermaid sold 1.79, -3.8%
Marco Polo sold .325, 11.0%
Madarin sold 2.16, +2.9%
Foreland sold .555 partially filled, -5.1%
China Sun sold .495, -8.3%
Chna Energy sold 1.20, -8.4%
Celestial sold 1.11, -10.5%
Aztech sold .325, -1.5%
Live Trading Records for 14 Dec 07, Fri
no trading.
Live Trading Records for 17 Dec 07, Mon
Chartered short covered 1.01, +1.9%, no significant drop despite STI dropped 232 point from 3621 to 3385, implying artificial manipulation of its prices by some vested organisation
DB9W STIsgaEPW080130 bot .44
C&C bot 20.10
Live Trading Records for 18 Dec 07, Tue
DB9W STIsgaEPW080130 sold .465 / .47 /.475 (queued 0.45/.455/.46/.465/.47/.475), +6.8% , last done .42, so lucky man! all bot away by Poems and DBSV clients before 09:00:30, I cancelled sell order at .42 this morning before leaving home for an examination due to fear of being eaten by market maker
C&C sold 20.60, +2.5%
Live Trading Records for 19 Dec 07, Wed
C&C bot 20.00
Live Trading Records for 20 Dec 07, Thu
Singapore public holiday - Hari Raya Haji
Live Trading Records for 21 Dec 07, Fri
C&C sold 20.5, +2.5%
CG added .44 added .44 for long term investment, eps 0.075, PE 5.9, net profit for 2003 04 05 06 07: CNY51m 66 70 134 159, CAGR 33%
C3PW STIdbkECW080303 bot .245, STI 1 min chart bullish, sold .265, +8.2% bot .255 added .245
EA3W STIsgaECW080328R bot .345
D6NW HSImblECW080130Q bot .62
no trading.
no bottom formations seen yet. for such a huge correction, it is impossible for the market to stage a significant rebound or to reverse direction without a solid bottom formation being in place.
Live Trading Records for 27 Nov 07, Tue
no trading.
STI no buy signal yet.
Live Trading Records for 28 Nov 07, Wed
Bread bot .60
Live Trading Records for 29 Nov 07, Thu
Gent short covered .685, -1.5%, both shorts failed.
Live Trading Records for 30 Nov 07, Fri
SPH bot 4.54 on closing match
Live Trading Records for 03 Dec 07, Mon
BH Global bot .80, stopped .76, -5% , something seriously wrong, low .685
Live Trading Records for 04 Dec 07, Tue
Chartered shorted 1.03
Live Trading Records for 05 Dec 07, Wed
China HongX added .91, tg 1.16-1.22, placement completed at 1.18 per share, 29.7% higher than .91 - are the institutional investors fools?! why didn't they buy directly from the secondary market?
http://www.listedcompany.com/ir/chinahongxing/newsroom/CHX_Announcement_Completion_3Dec07.pdf
Pac Andes bot .64, tg .75-.79
China Energy bot 1.31, tg 1.45-1.55
Sino Env bot 2.26
YZJ bot 2.07, tg 2.36-2.48
Mandarin bot 2.10
Sino Tech bot 1.16
C3PW STIdbkECW080303 bot .465, one of the largest volume CW, US futures and Europe green green
DA9W STIsgaECW080130P bot .405, partially filled
Celestial bot 1.24
Orchard bot 1.66
Live Trading Records for 06 Dec 07, Thu
Sunvic bot .31
HG M bot .485
UOL bot 4.56
DA9W STIsgaECW080130P sold .445, +9.9%
C3PW STIdbkECW080303 sold .49, +5.4%
GoldenAgri bot 2.07
CapMall bot 3.26
Pine bot .32
Lian bot .72
China Oil Field bot .95
China New Town bot .665
Aztech bot .33
Alantac bot .25
NOL bot 4.36
Marco Polo bot .365
CG bot .54
Aqua bot .48
Allgreen bot 1.56
YZJ added 2.13
Kim Eng bot 2.29
Broadway bot 1.13
Foreland bot .585
Venture bot 13.6
Courage M bot .42
Jade bot .31
Sinostar bot .615
Noble bot 2.36
UMS bot .38
Asia Env bot .84
Cacola .435
MTQ bot .71
HSIsgaECW080228 bot .33
Mermaid bot 1.86
Live Trading Records for 07 Dec 07, Fri
GoldenAgri added 2.10 on match, breakout
China Sun bot .54 on match, breakout
YZJ added 2.16, breakout
Pan Hong bot .90, potential breakout (not realised as expected)
HSIsgaECW080228 sold .27, -18.2% , heavy loss due to greed, there were opportunities to sell at around .35 in the morning
Live Trading Records for 10 Dec 07, Mon
no trading.
Live Trading Records for 11 Dec 07, Tue
Allgreen sold 1.62, +3.8%, JPM downgraded, 1 year tg 1.34, normally angmo brokerage powerful
D3UW HSImblECW080130P bot .41
Live Trading Records for 12 Dec 07, Wed
Jade sold .275, -11.3%
Venture sold 12.9, -5.1%
UOL sold 4.66, +2.2%
UMS sold .375, -1.3%
SPH sold 4.52, -0.4% excluding div 0.19 per share
Sinostar sold .58, -5.7%
Sinotech sold 1.10, -5.2%
Sinoenv sold 2.19, -3.1%
Pine sold .30, -6.3%
Pac sold .625, -2.3%
Orchard sold 1.66, +/-0.0%
NOL sold 4.38, +0.5%
MTQ sold .71, +/-0.0%
Lian sold .76, +5.6%
Kim Eng sold 2.23, -2.6%
HG sold .48, -1.0%
CourageM sold .41, -2.4%
ChinaOilF sold .885, -6.8%
ChinaNT sold .66, -0.8%
ChinaHX sold .99, -6.1%
Capmall sold 3.28, +0.6%
Bread sold .63, +5.0%
Asia Env sold .855, +1.8%
Aqua sold .48, +/-0.0%
Noble sold 2.40, +1.7%
GoldenAgri sold 1.90, -9.1%
YZJ sold 2.04, -3.9%
China Fish sold 1.84, +28.7%
HSImblECW080130P sold .35, -14.6%
6 net losers (loss>5%) after deducting 3 winners (profit>5%)
Live Trading Records for 13 Dec 07, Thu
Alantac sold .22, -12.0%
Mermaid sold 1.79, -3.8%
Marco Polo sold .325, 11.0%
Madarin sold 2.16, +2.9%
Foreland sold .555 partially filled, -5.1%
China Sun sold .495, -8.3%
Chna Energy sold 1.20, -8.4%
Celestial sold 1.11, -10.5%
Aztech sold .325, -1.5%
Live Trading Records for 14 Dec 07, Fri
no trading.
Live Trading Records for 17 Dec 07, Mon
Chartered short covered 1.01, +1.9%, no significant drop despite STI dropped 232 point from 3621 to 3385, implying artificial manipulation of its prices by some vested organisation
DB9W STIsgaEPW080130 bot .44
C&C bot 20.10
Live Trading Records for 18 Dec 07, Tue
DB9W STIsgaEPW080130 sold .465 / .47 /.475 (queued 0.45/.455/.46/.465/.47/.475), +6.8% , last done .42, so lucky man! all bot away by Poems and DBSV clients before 09:00:30, I cancelled sell order at .42 this morning before leaving home for an examination due to fear of being eaten by market maker
C&C sold 20.60, +2.5%
Live Trading Records for 19 Dec 07, Wed
C&C bot 20.00
Live Trading Records for 20 Dec 07, Thu
Singapore public holiday - Hari Raya Haji
Live Trading Records for 21 Dec 07, Fri
C&C sold 20.5, +2.5%
CG added .44 added .44 for long term investment, eps 0.075, PE 5.9, net profit for 2003 04 05 06 07: CNY51m 66 70 134 159, CAGR 33%
C3PW STIdbkECW080303 bot .245, STI 1 min chart bullish, sold .265, +8.2% bot .255 added .245
EA3W STIsgaECW080328R bot .345
D6NW HSImblECW080130Q bot .62
Labels: Live Trading Records
