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At 04:22 PM 6/3/01 -0700, you wrote:
>
>And as you point out, the buying part is only the beginning--how long do you hold it, or what king
>of exit strategies do you use?
>
>I offer this response as an example of how someone might use Metastock to answer some of these
>questions.........
>
>These are just some ideas and suggestions. There are lots of alternatives worth looking at in
>building a system that will work for this. As you asked for, mine is one of many "opinions" and
>there are probably as many opinions as ways that you could make a breakout system work or fail.
>You may find some setups that work very well for you and are suited to your style of trading,
>where others have written this approach off as being a failure or having limited profit potential.
I went and tried a few things myself to see what I could come up with. I don't know how
to do what you did, but what I did was similar. I used the Debry Multiple Security System Tester
plug-in to test multiple securites based on what I drew up.
I was able to come up with a fairly simple system that for the past 1 1/2 years
has been profitable using only price and volume to trigger a buy. But only on NASDAQ
$5 and under stocks. It did not work well on stocks priced higher than that.
The system bought in around a 52-week high. I've found the best results so far with a
15% profit target using a 7% stop loss. The result was 20 winners and 13 losers.
Dollars made vs. dollars lost was about 5 to 2. My broker's commission was factored in.
I am unable to use trailing stops and breakeven stops with the Debry plug-in
and no money management system was used, so the results could possibly be made
better.
It's still very early, but I think this method of buying has some promise.
I'll keep plugging away at it with various entry/exit strategies and see what happens.
Thanks,
Brian
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