traderblues
195 posts
msg #35968
- Ignore traderblues |
5/11/2005 5:50:51 PM
Way2Late: Another great book is "Trade Your Way to Financial Freedom", by Van K. Tharp.
This RSI(2) filter is interesting, and there are ways to improve your odds to trade it in the real world:
1. Wait 30 minutes after the open, then set a buy stop to trigger when it hits a fresh high for the day.
2. If you want to buy near the close, don't buy if it is closing below the open price.
3. If you have a system that sells on the third day, 30 minutes into the open set a stop 3% below yesterday's low, and if it is not triggered, sell 5 minutes before the close.
Also, for those who want to trade stocks priced below 20 cents, set a buy-at-the-bid, then when it's filled, immediately set a sell-at-the-ask (playing the spread).
Personally, I'm done trading on such a short time frame. You can make a lot of money by buying small caps at a DMI crossover, then selling 2 weeks later. The secret is to buy each and every signal, set stop-losses, and let the winners run.
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judgetrade
107 posts
msg #35975
- Ignore judgetrade |
5/12/2005 6:23:04 AM
Try this:
Test Code (Run to Backtest) -->
______________________________________________________________________________
Show stocks where RSI(2)is less than 1 two days ago
close is between 0.2 and 100
and close 1 day ago more than 10% below close 2 day ago
and close more then 10% below close 1 day ago
and price * volume > 100000
Results of TestCode:
05/11/2005 04/30/2004 05/11/2005 63% 35% 1.79:1 4.11 1069.59%
168 Trades, so 3 a week, good!
_______________________________________________________________________________
Basic Setup
Name: RSI low Price Stocks
Approach Type: Long
Start Date: 04/30/2004
End Date: 05/11/2005
Benchmark Symbol: ^SPX
Exit Setup
Stop Loss: 25%
Profit Stop: N/A
Trailing Stop Loss: N/A
Minimum Holding Days: 3
Maximum holding days: 3
Extra Indicators
Entry Columns:
Show Performance After: after 2 days
after 5 days
after 10 days
after 25 days
after 40 days
Advanced Options
Selection Method: select by volume descending
Entry Price: open
Conditional Entry: No
Exit Price: open
Maximum Trades Per Day: 25
Maximum Open Positions: 250
_______________________________________________________________________________
Trade Code --> (Run to trade!)
Show stocks where RSI(2)is less than 1 one day ago
close is between 0.2 and 100
and close more then 10% below close 1 day ago
and price * volume > 100000
______________________________________________________________________________
Run the Trade Code, look at all stocks, buy the stock that
lost more then 10% at the close, if there is more then one stock, buy the one
that lost the most or split your money, Your fill will be not perfect, but good enough. Stop Loss 25%, Hold for 3 Days. I only take 5% of my money and never more then 5 Stocks (so never more then 25% of my capital, rest in money market).
The only thing that is different from backtesting in the real world is, that the stock might gap down against you, but it does gap up more ofthen then it gaps down!
See you
Andreas
P.S. I am trading this! Got ENC at 4.04 (had a limit order at 3.81, it did not get filled).
_____________________________________________________________________________
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knowsenough
54 posts
msg #35978
- Ignore knowsenough |
5/12/2005 12:35:42 PM
Judgetrade
Got the same hit ENC last night on a new filter just written that also included ARDI FWHT STAK & CRV for a total of (5) returned. Backtesting YTD reveals 60% completion of trades @ a 12% exit stop. Cheapest stock returned was PCIS @ .96. I use a PE range to limit junk and most pinkies etc. Only want listed oversold. May need to up the stop limit exit as many are filling the high spread I seeked as a cushion. Work in progress. Later.
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JohnyYuma
60 posts
msg #35983
- Ignore JohnyYuma |
5/12/2005 9:45:12 PM
I have high regards for the fellow users who initiated this discussion
BUT
based on my own personal experience, I would be very, very careful (read .. not interested) in making investments in penny stocks - too much manipulaton there, or rather, only manipulation (the system is stacked against individual investor)
Again, just my personal opinion
Thanks
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TheRumpledOne
6,407 posts
msg #35984
- Ignore TheRumpledOne |
5/12/2005 10:08:29 PM
"shelupinin 5/10/2005 2:04:14 AM
I've just tested filter
without any stop loss and profit loss, just holding time = 2 days. With such conditions ROI=2054.7%, 69% - winners, 18% - loosers. So anyway it's GREAT filter!!! "
shelupinin:
YOU LEFT OUT A SPACE!!
Try this instead...
MAY ALL YOUR FILLS BE COMPLETE.
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