crunkle
54 posts
msg #85469
- Ignore crunkle
modified |
1/3/2010 4:56:23 PM
I'm continually looking to improve trade results. It occurred to me that, when running a scan, all purchases are made at the default price - that is the opening price the following day. I wanted to see what would happen if purchases were not made on days when the market opened lower but I don't have the programming skills for that - if it's even possible.
Next best thing, I set up the following entry trigger: (When setting up a backtest use the "Entry Price" box under the "Advanced Options" menu.
"target price equal to or greater than previous day closing price"
do not purchase if out of range of the target price(check the box)
Hopefully, this should eliminate buying scan-selected stocks if they open down the following day.
The win/lose ratio immediately improved by 10%+, Reward/Risk ratios improved by about 50% and ROI improved by 25%+ on selected scans.
I thought this was significant enough to pass around. If anyone can improve it further, please share
Thanks,
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cunparis
71 posts
msg #88046
- Ignore cunparis |
2/10/2010 8:32:29 AM
My testing has showed that when a stock gaps down, it's more likely to finish down than up. not enough of an edge to trade that outright, but it is useful information.
For my entry I use this:
set{myPrice, max(open, close 1 day ago)}
myPrice
This is for a short strategy. Would this do the same thing as yours (but for shorts)?
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drew9
171 posts
msg #88072
- Ignore drew9 |
2/10/2010 2:39:52 PM
Great work! I had tried to write something similar but could never get it to work. Thanks for passing this along!
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VenturaTrader
43 posts
msg #88095
- Ignore VenturaTrader |
2/10/2010 10:01:11 PM
I can't be in front of a computer during the day to trade. Whatever timing system or signals one is using, there is one strategy which has kept me from investing in position(s) when the market turns against my plans.
BUY: Place a conditional order to buy when the stock/ETF is one cent higher than the high of the day of the previous day. If the order does not get filled for two or three days and the market has moved against you, you have saved yourself a certain loss. You won't go into a position unless positive momentum is there.
SELL: Likewise, when it's time to get out of a position place a conditional order to sell (or a stop) when the stock is one cent lower than the low of the day for the previous day. If the position does not trade that low and you are not stopped out, the next day move the stop up to one cent lower than the low of the day and repeat until the stop is hit. This way, you will trade out near the top of a move in the position; you will still catch as much positive momentum as possible.
It does not always work out perfectly, but this strategy has saved me ton and takes the emotions out of the trading decision. It's like trading on autopilot!
Mike
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BarTune1
441 posts
msg #88169
- Ignore BarTune1 |
2/11/2010 11:43:30 PM
Mike,
I second your recommendations for those traders out there who can't be around the computer all day. I think there are alot of us who can be around most of the time more or less. I have to travel or get caught up in conferences the odd time here and there and have placed protective stops or on-stop buys as the case may be based on exactly what you suggest. It can save you alot -- and if the market is with you -- you can be in for a pleasant surprise when you get off that long flight.
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