StockFetcher Forums · General Discussion · Stock Market Checkup Help<< >>Post Follow-up
LuckyPimp
9 posts
msg #48784
Ignore LuckyPimp
12/27/2006 12:14:41 PM

I am wanting to get some help. I am wanting to find a strategy that I can trade with a limited amount of time. I was looking at Zacks Research Wizard and using one of their Fundamental strategies with a buy and hold, rebalancing each month. Their results are pretty impressive, out preforming the market by about 3 times each year. Also seem to work well in up and down markets.

I would like to get some help developing a StockFetcher strategy for the markets to help know when to get out of the market and sit on the sidelines and when to "play ball" (thanks TRO, got it stuck in my head). Anyways thanks for the help and let me know if this makes sense to you guys.




peacock
16 posts
msg #48786
Ignore peacock
12/27/2006 1:45:44 PM

The Zack's method does seem to have some merit. i looked it several weeks ago and they appear to look for stocks heading up with solid fundamentals. They were recommending T at the time and it had just hit the 200ma, its up over 60%annually since then.

A really interesting thing that was mentioned on the Zack's web site was that high ROE stocks that they play returned over 80% annually. Appologies for not remembering the author but there was a screen several weeks ago that found stocks where the 50ma and 200ma were parallel and heading up. The nice thing is that many of these stocks had high ROEs.

Another way is to play covered calls, buy the stock, sell an in the money call where the rate of return is greater than 30%. MSN Money has a column on the options screen called 'Time Value.' If time value is greater than 1.00 then the return is pretty solid. Also the 50ma must have a positive slope. (see paragraph 2 for a possible way to find candidates) The premium reduces your down side risk and the call limits your up side so the max you will make is whatever you bargained for originally. Also if the stock goes in the tank you loose everything below your cost basis. This will also provide fixed time frames based on the contract length. Or write out of the money calls for a better return. Now is probably not the best time to play this method, particularly if you think the market is going to drop in the next month or two.

If you find a method that works consistantly and reliably, let me know.




LuckyPimp
9 posts
msg #48787
Ignore LuckyPimp
12/27/2006 2:59:31 PM

Sure thing. My original thinking was to use some solid fundamentals and then use TA to stand on the sidelines while the market is not very good. Just gotta focus on the second 1/2


peacock
16 posts
msg #48788
Ignore peacock
12/27/2006 4:30:14 PM

Here is the screen mentioned earlier:

set{E50b,days(close is above ma(50),100)}
set{E50a,days(close is below ma(50),100)}
set{CxM50, E50a - E50b}

set{test1, count(close above ma(50), 60) }

add column cxm50

sort column 5 descending

test1 above 59

draw ma(50)

draw ma(200)



rharmelink
81 posts
msg #48791
Ignore rharmelink
12/27/2006 4:54:44 PM

Your first two conditions are the same. I assume you mean "Go Long" if both slopes are upward?


LuckyPimp
9 posts
msg #48789
Ignore LuckyPimp
modified
12/27/2006 6:07:20 PM

Thanks. I was reading this book called Entries & Exits and they use what's called an impulse system:

Slope of EMA & MACD Histogram are UP go LONG (no shorting)
Slope of EMA & MACD Histogram are DOWN go SHORT (no long)
Slope of EMA is UP & MACD Histogram are DOWN go LONG or SHORT
Slope of EMA is DOWN & MACD Histogram are UP go LONG or SHORT


This may or may not be very good, i'm not sure. I have not got it programed yet, still got my coding training wheels on.





LuckyPimp
9 posts
msg #48793
Ignore LuckyPimp
12/27/2006 6:07:31 PM

fixed.


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