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Another alternative approach can be:
The Dutch ING bank used to publish the "buy-the-winner" strategy.
They buy the top10 stocks with the best performance in the last year.
I can not find their latest performance.
When and if I find it, I will send the results to this forum.
Onno
At 10:05 PM 6/3/01 -0500, you wrote:
>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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