sulldt 31 posts msg #36563 - Ignore sulldt |
6/29/2005 5:30:37 PM
I've been watching the 90 day decreasing slope stocks on the home page and it appears to me if you wait until the stock closes below the bottom trend line and has its first up day you could either buy the stock outright or buy calls and get good results. If you put in a GTC sell order at 25% below your purchase price to cut your losses if your wrong and played the selling by ear it looks like you would be up 2 out of 3 or 3 out of 4 times.Option wise, losing 25% 1 time out of 3 and making 50%+ the other 2 times would be possible. Anyone tried a stradegy that resembles this or have any coments on the theory. Interested in peoples opinion on if this would work.
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da-net 55 posts msg #36565 - Ignore da-net |
6/29/2005 6:47:08 PM
If I understand you correctly, you might consider watching John Crane's Advanced Swing Trading DVD. It might help you with your idea.
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TheRumpledOne 6,411 posts msg #36566 - Ignore TheRumpledOne |
6/29/2005 7:38:21 PM
CLICK ON THE MAGNIFYING GLASS SYMBOL OR THIS MAY NOT WORK!!
I made a small change to the basic filter to display stocks near the bottom linear regression line(90).
I also changed the middle trend from 60 to 90.
HTH.
MAY ALL YOUR FILLS BE COMPLETE.
p.s. I really should have named this filter the SWISS ARMY KNIFE FILTER.
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corsino 259 posts msg #36594 - Ignore corsino |
6/30/2005 10:07:51 PM
Sulldt
There's nothing wrong with your theory, and there's quite a few simple filters on this forum based on stock prices at the bottom linear regression line. However, by backtesting quite a few over time,there's very few that resulted in 75% winners. What happens is that as you tweek a filter to increase the winning percentage, the number of stocks decreases until you get very few, maybe a couple a month. Also,filters seem to be good for short-time swing trading of a few days. It may be better to use a filter that provides sufficient number of stocks and then acquire the judgement skill to select the better candidates.
As for declining slope channels,it seems that increasing slope channels might give better results, although the difference may not be great.
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