Algorithmic Trading Strategies: BAK, 9.26% In 13 Days

Algorithmic Trading Strategies

On the 30th of December 2014 I Know First algorithm released a bearish signal on its 1 month forecast for BAK. At the same time the price moved below the 5 day simple moving average of the stock’s price, which is a strong position to enter a short position. Below is the original forecast, and the resulting trade which made 9.25% in just 13 days.

algorithmic trading strategies

Key Numbers and Dates

Sell Short Recommendation

You would sell short the stock on Dec, 30th 2014 according to the I Know First signal you received that morning of -71.55 and the fact that the stock closed below the 5 day simple moving average on the 29th of December. You would sell short the stock at the market opening price of $13.07.

Market Exit Recommendation – 9.26% In 13 Days.

According to the 5 day simple moving average (SMA) you would close your short position on Jan 12th post market when the price closed above the 5 day SMA at the price of $11.86. The total return would be 9.26%. In this case the algorithmic exit strategy is the same as the Market Strategy.

Where could I have found this forecast?

BAK belongs to our “Top x Stock Picks + S&P500” universe.  On Dec 30th, 2014 the stock’s position on the 1 Month table was 1st (on the short side), making available to “Top 5” and above subscribers.


What is BAK?

Braskem SA (BAK) is a Brazil-based company primarily engaged in the manufacture of basic petrochemical products. The Company operates in five segments: Basic petrochemicals, Polyolefins, Vinyls, International businesses and Chemical Distribution. The Company also invests in other companies, either as a partner or shareholder. Below is the trade we forecast in relation to the last year.