wanderer
7 posts
msg #98263
- Ignore wanderer |
12/28/2010 1:02:22 PM
I am looking for "flat" stocks. So far I have this:
price below 1.00
price touching ema(20)
price touching ema(50)
count(price < ema(200),100) equals 100
But the results are not flat still.
Take a look at VYGO before the December breakout as an example.
Cheers
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johnpaulca
12,036 posts
msg #98264
- Ignore johnpaulca |
12/28/2010 1:42:28 PM
some stocks will stay flat for years, parking your money in flat stocks not a good strategy.
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wkloss
231 posts
msg #98267
- Ignore wkloss |
12/28/2010 2:37:14 PM
johnpaulca,
Although this is not my thread, I wanted to respond to your point about flat stocks. You are correct that parking money in them is not a good strategy but writing covered call options can be profitable. Of course the under $1.00 price range listed the filter won't produce any candidates.
Bill
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gmg733
788 posts
msg #98273
- Ignore gmg733 |
12/28/2010 4:50:59 PM
Sneaking suspicion is there will be no volatility in a flat trending stock. :)
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johnpaulca
12,036 posts
msg #98275
- Ignore johnpaulca |
12/28/2010 6:19:02 PM
RINO....I consider this a flat stock. I am seeing an increase in buyers(volume), RSI is increasing.My entry will be around $4.80 using a small position, will increase position as the stock gains traction.
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wanderer
7 posts
msg #98289
- Ignore wanderer |
12/29/2010 9:36:48 AM
flat stocks breakout like vygo. I am looking for those that are flat, then pop above the channel. I have seen this hundreds of times. Now that I found this site I would like to build a filter for this and test.
With the little testing i did on the filter I have created so far I have seen 1000% return. I want to refine it though.
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scott111552
173 posts
msg #98291
- Ignore scott111552 |
12/29/2010 12:18:20 PM
Would you please share your filter? Thanking you in advance.....
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wanderer
7 posts
msg #98293
- Ignore wanderer
modified |
12/29/2010 12:44:26 PM
Here is what I have so far. I would like someone to chime in with adding to this. Spcifically:
1. narrow the filter down to stocks that are very flat for at least 6 months
2. Volume spike on the last trading day above average
3. Price close above the channel
4. Exit strategy needs improvement - too many large losses well below the 8% stop loss.
The setup below shows over a 3000% return over the last two years. This is far from complete though and I do not yet know how to trade this with 25 trades and 250 open positions.
price below 1.00
price touching ema(20)
price touching ema(50)
count(close < ema(100),100) equals 100
-------------------------------------------------------------------------------------------------------------------------------
Basic Setup
Name: Flatliners
Approach Type: Long
Start Date: 12/29/2008
End Date: 12/29/2010
Benchmark Symbol: ^SPX
Exit Setup
Stop Loss: 8%
Profit Stop: N/A
Trailing Stop Loss: N/A
Minimum Holding Days: N/A
Maximum holding days: N/A
Exit Trigger #1: price is above ema(20)
ema(20) is above ema(50)
ema(50) is above ema(200)
Exit Trigger #2: price is touching ema(100)
Extra Indicators
Entry Columns:
Show Performance After: after 2 days
after 5 days
after 10 days
after 25 days
after 40 days
Advanced Options
Selection Method: select by volume descending
Entry Price: open
Conditional Entry: No
Exit Price: open
Maximum Trades Per Day: 25
Maximum Open Positions: 250
Maximum Selected Stocks: All
Close all OPEN positions: Yes
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wkloss
231 posts
msg #98307
- Ignore wkloss |
12/29/2010 10:59:41 PM
wanderer
The setup below shows over a 3000% return over the last two years. This is far from complete though and I do not yet know how to trade this with 25 trades and 250 open positions.
Set backtesting to the # of trades you would accept each day, which you currently have set as the default # of 25, and set the totoal # of open positions, which you currently have set at 250, to the maximum # of open positions you would accept. Using the 25 & 250 is a good idea to test your concept (from a quote from Kevin_in_Ga). Then set the 25 & 250 to numbers you would actually trade. One thing I have noticed is that when testing using 25 & 250, some filters look great. When you set them to numbers you would actually use, many trades come all at one time. The return isn't anywhere like it looked.
Unless you have some automated system and unlimited capital, trading 250 open positions is impossible to manage.
Good luck.
Bill
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