traderseb
36 posts
msg #74989
- Ignore traderseb |
6/4/2009 7:19:28 AM
Save a step and use the percentage gains as relative comparisons.
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miketranz
961 posts
msg #74991
- Ignore miketranz |
6/4/2009 8:15:02 AM
I understand the theory,but when are you entering a position? Whats your holding time? When are you exiting? Whats your downside risk in dollars or are you stopping out at a certain price level?Have you used this method with any success? If so what percentage of your trades where profitable?Thanks........
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decipherlinda
133 posts
msg #74998
- Ignore decipherlinda |
6/4/2009 2:19:38 PM
I have only a basic familiarity with ADR's. I'm not familiar with "ADR30". Where can I find the list of ADR30 stocks?
Thanks 13th_Floor!
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chetron
2,817 posts
msg #74999
- Ignore chetron |
6/4/2009 2:24:32 PM
MAYBE...
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decipherlinda
133 posts
msg #75005
- Ignore decipherlinda |
6/4/2009 3:47:52 PM
By bypassing percentage gains you go directly to what it really is you want to measure..dollar profits.
Percent gains are derived from dollar gains and the higher the cost of a stock, the lower the percent gains so then you have to do another analysis to calculate the dollars involved. How common is that (I really don't know)? I bought OCNF at $1.40 on May 1st and a month later it's increased by 29% and made me $.40 per share. I bought BIDU on May 7th and a month later it's increased by 12% and made me $30 per share.
This is not an investing strategy, it's just a preliminary screen for choosing stocks to put through your own standard screening and investing strategy. Its value is that it puts stocks on a level playing field. It can make you aware of the stocks where you'd earn the most money in the shortest period of time. As I said before, if I had thought of this screen sooner, I might have bought SOHU instead of BIDU. I didn't even consider SOHU until I started thinking of things this way and saw it pop up on my filter results.
The main benefits are to orient me to the top performing stocks in dollars and to make me aware of some stocks to consider for higher returns and, when sorted by industry, if I see multiple stocks in any given industry show up on the filter, I check out the industry because it's probably doing well so I take that into consideration.
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decipherlinda
133 posts
msg #75008
- Ignore decipherlinda |
6/4/2009 4:55:54 PM
The code I shared before works but it's not cleaned up in terms of the code itself being easy to read.
You have to include some measure of equalizing various stocks on price. My filter uses $1,000 to equalize them on so I divided $1,000 by each stocks' closing price on various days (such as 5 days ago, 4 days ago, etc.) to get the number of shares that could be purcahsed for $1,000 on that day. (Number of Shares)
Then I calculated the amount of money that stock gained from the close of the day before the day selected above ( if using 5 days ago, the close of 6 days ago was used which is when you might have bought it), until now (the day the filter is run). (Dollars Per Share)
Then I multiplied the Number of Shares times the Dollars Per Share to see how much money that stock made per $1000 investment over the time frame (such as 5 days ago, etc.). This puts all stocks on an equal basis assuming you had $1000 to invest. If you have $300 to invest, you could modify that in the code.
I repeated this for every day for the last six days, each having its own column. That way you can look for consistency in performance of each stock over time. Each column shows the dollars gained from, say, five days ago (assuming you purchased at the close 6 days ago) until the time the filter was run. The next column to the left would be dollars gained from four days ago, assuming the stock was purchased at the end of the day five days ago, until the time the filter was run.
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