StockFetcher Forums · General Discussion · Joe G. vs TheRumpledOne: Different Views<< >>Post Follow-up
jim_c_hill
61 posts
msg #28748
Ignore jim_c_hill
9/20/2003 8:46:49 PM

I accidently sent the message before I had completed it. This is the full text of my message:
There is a discussion (argument?) between Joe B and TheRumpledOne regarding the use of rsi(2), the Holy Grail based filters and results. I enjoy both of their comments on filters and trading but I think the two are trading apples and oranges in terms of how they approach trading.

TheRumpledOne is trading low cost stocks for quick movements in large quantities. He monitors his trades daily and buy/sells looking at the charts and doing daily technical analysis. Joe G., on the other hand is trading close to close for one day or more with stops. He tends to trade short to mid terms but normally not daily.

I have observed that rsi(2) can help pick stocks that will do a one or two day large rise but can also fall quickly on a close to close basis. If one is monitoring a small portfolio the HG, rsi(2) trading could be quite successful with large percentage returns. TheRumpledOne has been helpful with this type of trading and seems to be doing well at it.

For others, who can not watch the market during the day and are more conservative in trading then the work Joe G. is doing on Koliga is very helpful and demonstrates some daily/weekly type trading strategies with stops.

Since TheRumpledOne is watching the market and using charts and other tools, the performance data on stockfetcher will not give a realistic view of how he trades or his results. He can pick a stock that in a day and half will give him a nice profit but at the close of the second day it might tank and show a major loss. TheRumpledOne hopefully would have gotten out before the close. The approach used by Joe G. probably would have resulted in a major loss because of his style of trading. Even using stops he might not be protected in a fast market. For Joe G., using rsi(2) in filters might not produce good results. However, Joe G., also uses stops that can keep him in a great stock for a long time and obtain a great return also.

So I suggest we all recognize their differences and the fact that they are trading differently. Both are good contributors and I encourage them to continue posting with filters and revisions and good comments.

Jim



TheRumpledOne
6,358 posts
msg #28750
Ignore TheRumpledOne
9/20/2003 11:13:11 PM

Thanks Jim.

The fact is I haven't knocked Joe G.'s filters. I just stated that RSI(2) usually improves any filter. And I even proved it today by tweaking Joe G.'s, HolySmoke, Adrianf's filter, IgOr's filter and the #1 filter at the time: PRICE BELOW .05 on the G5 score site. All showed significant improvement. But, of course, Joe G. can't accept an impartial judge.

I know you can't please some of the people all of the time. And a few of my detractors seem to fall into that category. SO BE IT.

I just know that my inbox usually contains 1 or 2 thank you emails from people who have profitted from my contributions.

When I came here as a newbie, I asked for help and received it. So I did what I could to pay it back and pay it forward by posting filters, links, tips, strategies, tactics, and techniques. A few people don't like me or what I have to say... oh well!

But the G5 results are in: RSI(2) rules.




jim_c_hill
61 posts
msg #28754
Ignore jim_c_hill
9/21/2003 1:13:00 AM

TheRumpledOne

I think we have to be careful about how we interpret the results of G5. The top winners are all using very low priced stocks. If one is trading those types of stocks, then yes, they are excellent filters for very short term trading. If one is interested in stocks between 10 and 25 I can tell you that the rsi(2)filters do not work well in many cases. Other filters work better. The rsi(2) seems more tuned for lower priced stocks.

I think comparing filters for low priced, penny type stocks to filters for higher priced stocks is comparing apples to oranges in many cases. This is why filter development is so interesting and challenging.

If we are going to argue or discuss filters I think we need to ensure that the surrounding parameters, trading styles, etc. need to be identified so we have standards for comparison. This is why I posted my views in this thread.

The more we can all share our ideas, the more we can all benefit. I work in the field of science and when we have generated our data and interpretations we are required to have the article reviewed by several external referees before the article can be accepted and published. We also have to state our assumptions and standards if used. In a sense we are doing this here when we first publish a filter. Others can look at it and perhaps see great points or flaws.


Jim





acervapsych
39 posts
msg #28758
Ignore acervapsych
9/21/2003 2:43:41 AM

To: TheRumpledOne

Back in July, I started to trade using RS(2) as an entry point and exit. I am not a day trader but, a swing trader. I am able to hold my position from one to two days with no problems. I trade about 8 stocks per month and with one lost. I do set a stop limit base on the chart and I use the chart to see how much more bottom the stock has before bouncing back up. I have learned a great deal from your method. I believe it is not the filter is how you trade and protect your money. I have also learned a great deal from my buddy Stockpimp. Which he has been trading for many years and very successful at it! Stockpimp has always told me to protect my capital first (money management) and the profit will come later!

Keep up the good work!



TheRumpledOne
6,358 posts
msg #28777
Ignore TheRumpledOne
9/21/2003 4:57:36 PM

Jim Hill:

You have to adjust the X of "rsi(2) < X". Some of the higher priced stocks' rsi(2) may not drop much below 10.

But I know that RSI(2) works like a charm with Home Depot(HD):

on 9/12 close $31.59, rsi(2)= 7.51 - a buy signal for this stock.

on 9/15 close $33.30, rsi(2)= 89.79 - why not sell? 1,000 shares = $1,710 gross profit in 3 days. That's over 5% return!

But I do know rsi(2) < 1 does spit out some higher priced stocks that have taken off to return nice profits.

BEST OF LUCK TO YOU AND YOUR FILTERS.




TheRumpledOne
6,358 posts
msg #28778
Ignore TheRumpledOne
9/21/2003 5:00:12 PM

acervapsych

Thanks for your post.

HolyGrail and I love to see others profit.

It sounds like you and your buddy, StockPimp, have realized that picking stocks is only the first step. Money management is what's really important.

MAY ALL YOUR FILLS BE COMPLETE.


StockFetcher Forums · General Discussion · Joe G. vs TheRumpledOne: Different Views<< >>Post Follow-up

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