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Stan, you are obviously referring to the Zacks
Zoomers strategy in Vectorvest. IMHO the only way
to trade any stock is to buy and sell based only on chart analysis and tech
indicators. My curiosity is as follows: Assume that you
trade the stocks selected by the Zacks Zoomer strategy by first making
sure that they pass a rigorous technical analysis. Then, you select
another set of low priced stocks to trade based solely on tech analysis scans
that you run in Amibroker. At the end of the day, was the net
gain improved at all by trading only those stocks that met the Zacks Zoomer
strategy. If we determine that the Zoomer stocks actually do a
little better, it could only be because the Vector sort was responsible for
moving the better candidates to the top of the list. Below, I have
copied an email that I just sent to another group. It describes a method of
buying and selling that has produced good results in my paper trading. Ron
D
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size=2>=============================================================================
Karen, don't listen to the naysayers regarding
penny stocks. If you become expert using technical analysis,
and glance at a chart of all your favorite indicators every night
after you purchase them, you will do well. Obviously, you will need to
stay with high volume stocks so you can exit quickly when you want to.
You can greatly reduce the risk by trading every stock that comes up in
your scans which has the proper technical indicators. When you get your
system down to a routine, you can easily glance at the charts of 20 to 30 stocks
that you own each night after the market closes. Each night, you will see
several of your stocks that are getting tired based on the tech
indicators. For those stocks that look tired during your after hours
perusal of them, simply enter sell on the open orders at your online
brokerage. Don't even think about each stock at all, just sell on the open
when it starts to look even a little tired. For your sell signal,you will
be looking for a dogie candle or a candle that closed down. The
next day following the dogie, or down candle, it usually opens very close to
where it closed the night before. Your holding periods will last from one
day, to eight days. Almost every stock that you buy will be in an oversold
condition, and you will be selling at the first sign of an over bought
condition. I use multiple moving averages of RSI and several other
indicators. The real key to this system is that you are catching each long
buy as it is coming out of an oversold condition , and selling it as it is
entering an overbought condition. To go short, you do just the
opposite. For shorts, you want the weekly time frames of RSI, etc, to be
in a declining trend, and you will be catching them just as a small countertrend
rally is returning to trend. With longs, it is just the opposite.
Ron D
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----- Original Message -----
<DIV
>From:
sjsolak
To: <A title=amibroker@xxxxxxxxxxxxxxx
href="">amibroker@xxxxxxxxxxxxxxx
Sent: Wednesday, April 02, 2003 6:49
AM
Subject: Re: [amibroker] Amibroker vs
Tradestation 2000i
Ron D,
I have not done any studies. I have
found a lot of penny stocks giving big percentage winners using Vector
Vest. But, I have not learned how to keep a
profit. I should get rid of losers quick.
I just started using AmiBroker and don't
know enough about it to really use it well. I
will keep trying to learn.
Stan Solak
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----- Original Message -----
<DIV
>From:
mrdavis9
To: <A title=amibroker@xxxxxxxxxxxxxxx
href="">amibroker@xxxxxxxxxxxxxxx
Sent: Tuesday, April 01, 2003 11:12
PM
Subject: Re: [amibroker] Amibroker vs
Tradestation 2000i
Stan, have you done any studys that show that
stocks selected by vectorvest are more likely to perform better for you
than those that you find using only technical analysis
scans? I would like to hear opinions from a lot of Amibroker users
about this. Ron D
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