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| joepistell 37 posts msg #119168 - Ignore joepistell |
4/19/2014 3:39:24 PM I need the super smart traders here to tell me if this is possible. Goal: Trade an ETF based on the technicals of the stocks that are in the ETF. Example: If 34% of the Dow 30 is above it's ma(8), buy DIA. I see we have symbol list dow 30, or watch lists to call. Clueless in Syracuse |
| joepistell 37 posts msg #119170 - Ignore joepistell modified |
4/19/2014 3:59:30 PM Background While listening to the world class trader Linda Bradford Raschke on youtube*, she spoke of one of her favorite setups where if close is > ma(5) for 7 of the last 7 days, then buy the 1st close below the ma(5) and sell 7 days later. *https://www.youtube.com/watch?v=zf6zPlqVVr0 (6:30 mark) While tinkering in backtesting, I noticed brief periods where this filter would drop to zero. They made for FANTASTIC entry points in the major indexes. This lead me to think that tracking internal technicals would be an ideal sell or buy signal for ETFs, indexes or for timing trades in general. thoughts? p.s. entry dates back tested last 2 years: ==2012== 6-19 10-31 ==2013== 6-16 ==2014== 2-5 Un-optimized Summary: if your in an up-trending market this calc equals zero "count(close is above ma(5), 7) equals 7", then buy the next open. |
| joepistell 37 posts msg #119171 - Ignore joepistell modified |
4/19/2014 4:06:16 PM Here's a screenshot of the backtest. I arrowed the zero buy days.  |
| joepistell 37 posts msg #119175 - Ignore joepistell modified |
4/20/2014 8:22:10 AM I arrowed the backtesting signals (above) on a 2yr chart of IWM  |
| guspenskiy13 976 posts msg #119236 - Ignore guspenskiy13 modified |
4/27/2014 5:31:07 PM Very interesting, it seems that we are just buying the dip in a strong up-trend with this strategy? P.S. Considering your question of trading ETF based on the technicals of the stocks that are in the ETF,,, If the technicals in the stock look good, why bother with ETF at all? |
| joepistell 37 posts msg #119634 - Ignore joepistell |
5/12/2014 7:42:24 PM Simply looking at internal signals from each stock within the ETF to help signal an change in the tide. |
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