StockFetcher Forums · Filter Exchange · TRADER JOES BREAKOUT TRADING MACHINE<< >>Post Follow-up
jpistell
123 posts
msg #34865
Ignore jpistell
1/13/2005 7:40:54 AM

This is a work in progress that shows promise.
It looks for forgotton stocks, finds a breakout, then erects trading bands that wait for price to pull back into. While you're waiting for the pull back, you DIG for info on the company (new products, new management, etc...) My Complete Trading notes are below.

Also, I am a trader, I "see" things that I try to emulate in scripts. I am not an accomplished not a coder. If anyone finds significant improvements, please share.

G'Luck,
Trader Joe

Fetcher[
/*TRADER JOE'S BREAKOUT TRADING MACHINE*/

/*--OFF THE RADAR-- BASE SET UP(1)*/
set{vola, count(volume > avgvol(100),50)}
and vola 10 days ago has been below 10 for the last 44 days

/* BUY BAND SIGNALS ENGINE (2) */
set{lowline, atr(22) * 4.5}
set{midline, atr(22) * 1.33}
set{setline1, upper bollinger band(63)}
set{setline2, upper bollinger band(11)}
set{topline, atr(5) * 2.8}
set{Triggerline, setline2 minus topline}
set{EntryLOW, setline1 minus lowline}
set{EntryMID, setline1 minus midline}

/*TRIGGER LINE(3)*/
set{ext, Triggerline - EntryMID }
and ext has crossed above 0 within the last 40 days
and pp > entrylow

/* GLOBAL*/
show stocks where price is between .4 and 4
and avgvol(90) is > 50000

/* VISUAL AIDS */

draw EntryMID on plot price
draw Triggerline on plot price
draw ext 60 day low
draw atr(22)
draw atr(5) on plot atr(22)draw EntryLOW on plot price

/*DO NOT DRAW*/
do not draw pp

and date offset is 22
]


Trading notes:
(1)OFF THE RADAR BASE SET UP:
This counter simply looks for investor apathy. It is a very powerful tool used to find early breakouts, and is very useful with thinly traded stocks.
VERY SIGNIFICANT EVENT: Look for cross above 9.9, it often signals a big move

(2) BUY BAND SIGNALS ENGINE:
Look for the breakouts to pull back into this band. Scroll thru the charts, all too often a touch to the EntryLow line starts a new uptrend.

(3) TRIGGER LINE:
This line confirms the breakout and helps confirm the failed rally.
On the entry side,
all too ofen rallys fail from too small an breakout amplitude. By dialing in the ATR on the Triggerline, you'll find stronger or weaker breaks.
On the Exit side,
Failed rallies always have the triggerline below the Entrylow line and price below both. If vola is trending higher also, GET OUT FAST.*/

/*Trading Methods
ENTRY:
This filter looks for a stock that is "dead on the vine" that has just woke up. Buying the initial breakout is unprofitable too often. If its truely a MONSTER then it'll go thru a series of 3-4 significant breakouts on its way to 200% + gains. Let the mini stock pop and then digest its initial gains. Look for it to pull back to the entry low line. WHILE is pulling back, DO RESEARCH ASAP. Look for new products, new management, recent capital funding, etc... AVOID all but the best you can find.

EXIT:
Trend has Failed#1:
3 highs below EntryLow and TriggerLine is below EntryLow. If you've bought it right, the stoploss is very manageable.
Trend has Failed#2:
EntryMid must have a nice rounded upward trending shape for a trend to have momentum. If your trade is going no where and the EntryMid line is flat to down, begin to make plans for your exit.
Profit Taking#1:
Any visit to a recent high with vola at a lower point than teh recent high.
Profit Taking#2:
Lay another short term Bollinger band on the plot price. Sell stop 1st full bar under the upper band, or, add an atr(x) multiple to it and put in your limit order.


jpistell
123 posts
msg #34867
Ignore jpistell
1/13/2005 10:12:05 AM

FYI:
for reasons I cannot understand,
draw EntryLOW on plot price does not plot on price,
BUT,
if you turn off this:
/*and pp > entrylow*/
it plots properly.


ham1198
172 posts
msg #34882
Ignore ham1198
1/14/2005 9:49:59 AM

Joe, thanks for the filter. It's great. One question, can you give some tips on reading the price chart. There are three lines graphed, entrymid, triggerline and entrylow. Is there an entry point you should be looking for? Like when entrymid croses over the triggerline?

Thanks for your help, it is greatly appreciated.


jpistell
123 posts
msg #34884
Ignore jpistell
1/14/2005 11:16:43 AM

Ham,
I don't know about you, but the script that was posted in our forum wasn't the same as on my desk. There is suppose to be an upper and lower band where price falls into. The forum script wasn't doing it. Take a look at this.

Fetcher[
/*TRADER JOES BREAKOUT TRADING MACHINE*/
draw EntryLOW on plot price
draw EntryMID on plot price
draw Triggerline on plot price

/*--OFF THE RADAR-- BASE SET UP(1)*/
set{vola, count(volume > avgvol(100),50)}
and vola 10 days ago has been below 10 for the last 44 days

/* BUY BAND SIGNALS ENGINE (2) */
set{lowline, atr(22) * 4.5}
set{midline, atr(22) * 1.33}
set{setline1, upper bollinger band(63)}
set{setline2, upper bollinger band(11)}
set{topline, atr(5) * 2.8}
set{Triggerline, setline2 minus topline}
set{EntryLOW, setline1 minus lowline}
set{EntryMID, setline1 minus midline}

/*TRIGGER LINE(3)*/
set{ext, Triggerline - EntryMID }
and ext has crossed above 0 within the last 40 days
and pp > entrylow

/* GLOBAL*/
show stocks where price is between .4 and 4
and avgvol(90) is > 50000

/* VISUAL AIDS */
draw ext 60 day low
draw atr(22)
draw atr(5) on plot atr(22)

/*DO NOT DRAW*/
do not draw pp

and date offset is 22
]




ham1198
172 posts
msg #34885
Ignore ham1198
1/14/2005 11:45:42 AM

Thanks much. That's a lot clearer and different than what I had.

Again, thanks for your help.


jpistell
123 posts
msg #34886
Ignore jpistell
1/14/2005 12:09:00 PM

Ham,
I'm wrestling with that now. Here's what I know.

I'm trying to find the signature of stocks that are asleep and now have NEW interest.

The Setup.
VOLA is an excellent filter that finds total apathy. A very good set up.
To start the new trend, we need a 1st signal.

There are three 1st signal styles.

a). Early Bird buying panic.
...A 2-5 day spike in price that falls back into the channel.
These are often 20 to 90 days early.
This signal often fails IF triggerline < EntryMid.

b). This style is what I think are -the silent but anxious buyer(s)-.
...This is big money on the bid, slowly and patiently causing a pattern that looks like a jet slowly taking off. A nice rounded lift off (example: see SLPH Nov 2004).
Its hallmark is Vola rising nicely and cross above 9.9 often is a hot button.
This pattern will not allow TriggerLine to cross over EntryMid.
The filter currently is not set to find these.

c). Big News Pop.
...These are the toughest to trade. (example: See DIGL or CLWT).
Damn stock is up nearly 100% in 2 days and the market makers are pissed!
Time and time again the market makers return the price back to the pre-news price (like where DIGL is right now at $1.07).
Now we've got a few hundred thousand buyers that are not happy and would love to sell near breakeven. This will put a lid on the stock.
I like to read the news to see if its significant, but in most cases, I avoid these like the plague.

So we're talking about style a). Early Bird buying panic.
If you see that I've got triggerline crossed above entrymid as a 1st signal (within the last 40 days). I looked at Low crosses above EntryMid and found too many false triggers (example: see ASX nov 2004).

After this 1st signal there is a digestion period that lasts 20-40 days, and IF the news is real, a new uptrend will be born. Take for instance DIGL. CSCO's capex spending projections make trickle down into DIGL's space. THis $1.07 area looks interesting. I'd set a sell stop with a high below entrylow.

Other findings:
EntryMid is an excellent trend indicator.
if Entrymid is flat to down, be a very very patient buyer.
If entrymid is trending higher, dollar cost average in (I'm a big investor in VSNI on this basis).
Don't be afraid to sell into strength. Big, big volume, with a close > upper bollinger(22) and I'm an AM seller.
Sell stop (failed trend). close below entrylow and close below triggerline, especially if vola is rising!

These are early trend grabs. They often fail, trade defensively!

G'Luck,
Trader Joe



ham1198
172 posts
msg #34918
Ignore ham1198
1/17/2005 1:04:23 PM

Joe , Thanks again for your reply. What I'm trying with your filter is I take the 20 or so stocks it pulls up, by the way, I've increased the price to search for stocks between 15 -30, and run them thru a Stockchart check. What I did was I set the Indicator Window to show graph of Bollinger Band width 20days with 2.0 standard deviation. Below that I selected ROC - Rate of change, using 12 days.

This gives me a good look at the volitility. I learned this from a website that had an old StockFetcher guru, Matt Claaseen. He liked the BBW because in a nutshell, historically periods of high volitiility are always followed by periods of low volitility. Look at the chart, it's pretty amazing to see he is right and how price follows. If you want I'll post the site for you.

Thanks again, and good trading.


mnkayaker76
7 posts
msg #43259
Ignore mnkayaker76
4/28/2006 2:18:32 AM

Wow, I've learned a ton by reading and testing these filters!!! Thank you!


kliebert
17 posts
msg #43418
Ignore kliebert
5/2/2006 12:40:44 PM

Pop to the top.

Want to see this filter discussed more.


joepistell
30 posts
msg #117821
Ignore joepistell
1/20/2014 3:04:39 PM

Pop to the top for thoughts

StockFetcher Forums · Filter Exchange · TRADER JOES BREAKOUT TRADING MACHINE<< >>Post Follow-up

*** Disclaimer *** StockFetcher.com does not endorse or suggest any of the securities which are returned in any of the searches or filters. They are provided purely for informational and research purposes. StockFetcher.com does not recommend particular securities. StockFetcher.com, Vestyl Software, L.L.C. and involved content providers shall not be liable for any errors or delays in the content, or for any actions taken based on the content.


Copyright 2016 - Vestyl Software L.L.C.Terms of Service | License | Questions or comments? Contact Us
EOD Data sources: DDFPlus & CSI Data Quotes delayed during active market hours. Delay times are at least 15 mins for NASDAQ, 20 mins for NYSE and Amex. Delayed intraday data provided by DDFPlus