SHARES PER SERIES – Controlling Share Count

The Tactical Trading algorithm has three inputs: the Cycle Series, the Trade Range and the Shares Per Series.

The Shares Per Series (SPS) is the shares multiple. It controls how many shares are bought or sold in conjunction with the Cycle Series. This is found by summing the first and last numbers in the Cycle Series and multiplying that sum by the Shares Per Series.

For example, if the starting Cycle Series is 1,2,3,4 then the number of shares to trade is:

• Sum the end numbers: 1,2,3,4 >> 1 + 4 = 5
• The Shares Per Series = 100
• 5 X 100 = 500. Trade 500 shares

The Shares Per Series can be modified to determine a comfortable share count. While a less expensive stock trading at $10 can use an SPS of 100, a stock trading at $200 is made affordable by using an SPS of 10.

Historically it is proven that the SPS should be a whole number (no decimals) and best if set to produce round lots. So an SPS of 10 or 100 is acceptable, but an SPS of 12 or 72 is not. Odd lots like this are difficult to fill so you are better off using an SPS ending in zero.