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| brank20 41 posts msg #93055 - Ignore brank20 |
5/23/2010 12:32:03 AM I figured I would try to come up with a way to use volatility as a means to lock in profits when it comes to penny stocks. Still working on the finer details of the filter, but it was similar to the idea 5% a week filter that Kevin posted a while back. Tweaked the formula a bit, made it simpler. Still working on the exits. Right now its set to 10%. Heres my results so far. I will release the final filter when I am done tweaking it. |
| brank20 41 posts msg #93057 - Ignore brank20 modified |
5/23/2010 12:48:58 AM If anyone has any recommendation on how to cut losses sooner, and or allow winners to run, please feel free to advice. Right now Im having problems with optimizing this filter to minimize the big losers. For example MMUH, 83% ouch! |
| Kevin_in_GA 4,599 posts msg #93059 - Ignore Kevin_in_GA |
5/23/2010 7:57:50 AM Not sure ... the volatility you are exploiting here cuts both ways. If you set a stop loss, you'll reduce your win % and average gain. It may simply be better to take the occasional big loss as long as the overall gains are there. |
| olathegolf 119 posts msg #93061 - Ignore olathegolf |
5/23/2010 10:58:47 AM I’ve seen the same problem. Play around with the stop loss to avoid a big loss triggers additional losses that were showing up previously as gains. As Kevin says, it speaks to the volatility. I might suggest tying to assess the true liquidity of these stocks. Nearly all are trading in the 0.000X range so even with high volumes, you’re not talking about a lot of $$ traded in a given day. Depending on your level of investment, you may have trouble selling your position. Have you tried running your filter for slightly higher priced stocks, say “close above 1”? |
| swiftsailing 5 posts msg #93181 - Ignore swiftsailing |
5/26/2010 10:53:57 PM Backtesting in SF for these stocks are not going to accurately represent real world results. Stocks that trade under a penny are going to have next to nothing in volume unless they are being pumped. |
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