|
PureBytes Links
Trading Reference Links
|
List,
If anyone is interested, I have an Excel spreadsheet that I put together
with 3 pages. The first page lists those 13 stocks we selected out of the
original 55 gleaned from ValueLine. The second page is a quick analysis of
what would have happened if we had bought all 55 of the list, and the third
page shows our breakout of 25 stocks from the original 55 using one of our
programs to determine over-bought or over-sold conditions. These 25 stocks
were, according to our system, ready to be bought.
If anybody is interested, I can send them a copy, but didn't want to just
throw it out on the list.
Our stock selection technique is as follows:
1) Friday night, we go out on the ValueLine web site and go down to their
stock pages. We select those stocks that have a 1 in timeliness, and a 1 or
2 in whatever the second column is to the right of timeliness. We look for
a beta > 1.25. I think we snuck INTC in as well. This is our preliminary
cut. This gave us a list of 55 different stocks. We try to stick with the
top performing industries.
2) In the next step we apply one of our trading programs to each stock, to
determine whether or not our program indicates that the stock was over-sold.
If it was over-sold, we added the stock to our next list. This reduced the
actual number of stocks from 55 to 25, I believe.
3) Theoretically, we could have bought all 25. Finally, we go through the
list by hand on a conference call and arbitrarily select between 10 and 15
stocks that we buy on the next day's open. We haven't spent any time on
this step yet, and through dumb luck have managed to do fairly well with our
portfolio.
I have to give my brother for designing this approach. We will be spending
more time on step 3 as well as working on modifying the procedure for the
short side. Right now my brother is a little nervous selling stocks short.
You would think that after trading futures both ways for 40 years, he
wouldn't have that problem.
Anyway, we went with 13 original stocks on Tuesday's open and added 4 more
this morning. Based on my preliminary calculations we are a little ahead
with our own portfolio as opposed to buying all 25 stock, but not by much.
We are in the process of going back and entering the OB/OS indicator in this
spreadsheet to do some more work on Step 2 and Step 3, above.
By the way, purchasing even 100 shares of each of these 55 stocks stressed
out each of our margin accounts, but we could have done it with a little to
spare.
Guy
Paranoia...you only have to be right once to make it all worthwhile!
|