StockFetcher Forums · Filter Exchange · My First Multi-bagger for 2010<< >>Post Follow-up
265 posts
msg #88297
Ignore trendscanner
2/15/2010 6:11:54 PM

Iím much busier at work this year so donít have as much time to spend on trading/investing or SF as I did last year. Still, I managed to get my first multi-bagger for the year recently. XCHO, in at $0.135 on Jan 21; it closed at $0.48 Friday for 350% gain so far. Hopefully won't be my last multi-bagger for 2010.

Iíve been using a variety of filters to screen for microcaps that look like they may be ready for a leg up. I look for companies that have promising charts plus some combination of proprietary and timely technology, game-changing patents, or some other differentiator that gives them a sustainable business advantage. Generally I want to find companies with a market cap between a few tens of millions to about 100 million, companies that have the potential to end up as IBD 100 companies but I want to find them before the masses and institutional investors do since thatís when the big money can be made.

Most of the big action seems to come from sub-$1 stocks breaking out from trading a few tens of thousands of dollars per day into the hundreds of thousands of dollars a day range.

An example filter Iíve been running to screen for candidates is:

/* Breakout Filter - small and microcaps - run intraday*/
/* Looking for small cap breakouts that may run for a few days to weeks*/
/*Run in morning at noon, and past 3 */
/* look for tech China, pharma,etc breaking out of well formed base */
/* look for long upslope on OBV with recent increase*/
/* Look for higher lows on recent rsi2 */
/* Look for multiple new high volume bars rather than 1 huge volume bar*/
/* Look for recent breakouts that fib retraced, if OBV is holding up, look for reentry*/

set{money, close * average volume(50)}
set{cmf1, count(Chaikins Money Flow(20) > 0, 99)}
set{cmf2, count(Weekly Chaikins Money Flow(20) < 0, 99)}
set{days_cmf1, days(Chaikins Money Flow(20) < 0, 99)}
set{days_cmf2, days(weekly Chaikins Money Flow(20) < 0, 99)}

close reached new 30 day high
/*close 6% above close 1 day ago*/

money > 8000
money < 1500000

/*close 1 day ago below upper bollinger band(16,2) 1 day ago*/
close above upper bollinger band(16, 2)
open below upper bollinger band(16, 2)
rsi(2) > 95
close > 0.05
close < 5
/*weekly Chaikins Money Flow(20) > 0*/
draw Chaikins Money Flow(20)
draw OBV
add column rsi(2)
add column pe ratio
add column eps
add column market
add column ind
add column separator
add column Chaikins Money Flow(20) {CMF20}
add column weekly Chaikins Money Flow(20) {weekly CMF20}
add column money
add column cmf1
add column cmf2
add column days_cmf1
add column days_cmf2
sort by column 13 ascending

Not intended to find short term scalps or swing trades. Most of the hits from this and the other filters I use are usually not worth buying; you have to weed through them to find the good ones. I look for stocks breaking out from a well formed base or those that look like theyíre in consolidation from a pullback and ready to move higher. OBV that is headed straight up or several days of daily volume or several weeks of weekly volume that are well above average are also good signs. I don't chase anything that has already run up too far.

If I see an interesting chart, I use Yahoo Finance to take a look at what the company does, check the companyís website to see what info they offer, what patents or proprietary technologies they have, their management credentials, their business model, and if they have any revenue or are poised to increase their revenue or profit significantly. I may look at the latest 10Q or 10K too.

If I find a promising candidate, I check the discussion board at iHUB and see what the buzz is there. If there are too many people tracking it on iHUB, I usually pass on it since that usually means itís over traded and not ďundiscoveredĒ. If everything looks good and I think the company is poised for significant revenue or profit growth and their patents, IP, etc look compelling, I may take an entry position and see how it plays out. If things progress positively, I may scale in for a larger position.

It takes a lot of work to weed through all of the dogs to find good companies worth holding for any length of time. Also, the liquidity can be very low, especially before the stock makes any sort of big move, and of course, you can lose money on the trade. Still, I enjoy finding out about some of these companies and, when and if it happens, itís a lot of fun to see something you buy go up a few hundred percent. It does good things to your account too.

4,577 posts
msg #88308
Ignore Eman93
2/16/2010 1:08:24 AM


288 posts
msg #88318
Ignore Radiomuse
2/16/2010 11:01:10 AM

Thanks. Check out PROT from that filter.

StockFetcher Forums · Filter Exchange · My First Multi-bagger for 2010<< >>Post Follow-up

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