cabogordon
88 posts
msg #76162
- Ignore cabogordon |
7/9/2009 2:34:18 AM
Gentlemen,
I'm very green, but a hard worker. I have been trying to find a system that works in bull and bear markets. I've literally gone through 100 plus filters as well reading 1000's of yours posts on SF. After working 90 hours a week for the last 2 months. I found something thats working or " back testing " very well. I wanted to explain it to you guys , so you could challenge it , poke at it and maybe get a good laugh at my expense, sorry about spelling and grammer..
the strategy is for GOING SHORT in any market: lets call it " GET SHORTY "
Here it is.
1. I run a simple filter to find the highest RSI stocks: filer was provided by Mary4Money. The filter is at the bottom if you want it.
2. I then pull up a daily chart with RSI , MACD and Volume.
*** the stock must be above the top bracket useing " linear regression ( setting 65-1 ) " this is KEY.......
3. I pull up the stock with the highest RSI . Usually 99.1 or higher, i like stocks over 20 bucks
4. The daily chart tells me if still has some gas ,or are the candles still green is their wick, the macd tells me if it crossed over , linear regression lets me know if it peaked out and over the top bracket or channel.
5. My experiece tells me that after they show up on my filter they still have a little momo in them, maybe a day or 2 at must.
*** A doji usually shows up signaling a reversal
** I only enter the trade if macd cross over and it hits or go above top brakcet useing LR.
6. I then open one screen ( e-signal ) on the daily and a second screen on 60 min chart. once the daily looks top heavy my eyes move over to the 60 min and 15 min to enter
7. My stop loss is always set one dollar above the entry point to give myself some room. I might even add to it ... If you I follow the strategy and don't enter until all my signals set up... it should be high return low risk trade.
I will start trading it this week with 100 shares trades to test it against the mental part of my trading head... you know the empty one from to much sun, surf and cerveza.
It also might work useing stocks that reached 52wk highs.
Thats it... what do you guys think ...
filter: for finidng high RSI stocks: (sure you guys have it or one like it )
_____________________________
rsi(2) power scan and average volume(30) above 750000 and stock is optionable and add column rsi(2) and add column rsi(2) 1 day ago and add column rsi(2) 2 days ago and add column rsi(2) 3 days ago and add column rsi(2) 4 days ago and add column rsi(2) 5 days ago and add column rsi(2) 6 days ago and add column rsi(2) 7 days ago and add column rsi(2) 8 days ago and add column rsi(2) 9 days ago and add column rsi(2) 10 days ago and add column rsi(2) 11 days ago and add column rsi(2) 12 days ago and aff column rsi(2) 13 days ago and add column rsi(2) 14 days ago and add column rsi(2) 15 days ago and add column rsi(2) 16 days ago and add column rsi(2) 17 days ago and and set{sm%, weekly atr(8)/ weekly close(8)} and add column sm% and close above 0.60
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chetron
2,817 posts
msg #76163
- Ignore chetron
modified |
7/9/2009 6:32:04 AM
CLICKABLE....
CORRECTED SPELLING ERROR....
TECHNICALLY, AS A FILTER, YOU ARE ONLY FILTERING ON PRICE AND VOLUME
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chetron
2,817 posts
msg #76164
- Ignore chetron
modified |
7/9/2009 6:36:50 AM
WHAT HE SAID......
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luc1grunt
622 posts
msg #76167
- Ignore luc1grunt
modified |
7/9/2009 7:47:24 AM
not sure about the arbitrary use of "$1" as a stop. Are you using acceptable (probable) stops with position sizing?
I think this in an area that could use some tweaking in what I believe to be a valid strategy.
The only other note would be the reliance on MACD after you have used the initial screen. As a "lagger", the MACD may shave some of the edge away.
How do you determine profit targets? The exits will determine expectancy...without it, impossible to quantify trade management and results.
Just some thoughts.
Thanks for sharing and Good Trading. :)
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cabogordon
88 posts
msg #76172
- Ignore cabogordon |
7/9/2009 9:50:36 AM
Luc,
thanks for taking time to review. I have not really studied or defined any rules towards exiting the trade and locking in profit. As far as the stop loss, once again have not defined any game plan thier either. I will start putting more thought into this as I beta test it with real dollars ( small fills ). I too believe MACD might be helpful in managing the trade once executed. have a great day. thanks again.
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cabogordon
88 posts
msg #76173
- Ignore cabogordon |
7/9/2009 9:51:25 AM
Chetron,
once again thanks for your help. any feedback on strategy ?
really appreciate you man.
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cabogordon
88 posts
msg #76174
- Ignore cabogordon |
7/9/2009 9:53:50 AM
Its seems my filter is producing different RSI results. Neverthessless, once it finds a high RSI stock. it time to set it up on daily and 60 min chart and start watching the candles, macd, rsi and linear regression.
back tested: gone back 2 years so far... it works 99% of the time ONLY if you wait for the set up. DOJI, MACD cross over, at or above daily linear regression top bracket. remember all stocks pull back even if its for a day before they re set and move on upward. thats a FACT.. the key is finding that point , exact point they roll over. this system / strategy is finding that golden momemt.
I will start testing it on thur with money... i use 4 screens and will pull them up once the filter finds them. the you or i should say I have to wait for the signals to allign.
goodnite all.
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luc1grunt
622 posts
msg #76183
- Ignore luc1grunt |
7/9/2009 12:00:24 PM
what does your back test show r/r ratios?
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cabogordon
88 posts
msg #76187
- Ignore cabogordon |
7/9/2009 12:22:22 PM
have not quantified as of yet... will post once i've compulated all the data.
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