Mostly: Classical

[Sexton O Blake]

Help for Blake: Suggestions please!

I have been buying some US stocks of late (testing some new methods). Assuming about a 3.5% stop loss from the purchase. I still need to develop other stops once the security starts moving higher -- and then slips (to lock in profits).

The larger problem is that I have two headwinds. First the stock price itself, then the rising CDN (and declining greenback).

So a stock that is not moving up is declining along with the greenback. My stop needs to be based on extra calculations to account for the CDN conversion (i.e. I cannot just look at the price for the stop % alone).

I want to buy a US stock and actually make money and if I am losing dump it - but obviously looking at the stock price alone is a massive flaw.

I am not really sure on how to handle this so I thought it would be good to query you all.

Options include
a) Not buying US stocks (not really a good answer)

b) Handle both stops separately. ie tag the price as 3.5% and the currency with a difference %. If either drop their respective % then sell the stock.
A mild change in currency would not trigger a problem. But with what I had lately - a drop from 1.18 to 1.10 would have gotten me out sooner (that was about a >7% drop in currency alone).
(The stock price actually was about $4 higher yet I was losing money due to the decline in US$). So I sell the stock lately which declined back to its buy price, and I am out $400 - because of the currency.

c) Get into some kind of hedging - ie for each $1US invested, invest $1 in an offsetting security. (it rises as the US$ declines). (will add transaction costs and reduce profits overall but will reduce risk too - hopefully more risk taken away than profits).

If I believe that the US$ cannot decline anymore, than the flood gate can open and I should be ok. But who knows.

Anyways any help would be appreciated - looking for ideas.

thanks
iSoB