|
PureBytes Links
Trading Reference Links
|
Well, RealTraders, I'm posting the following simple trading system just
to keep my two cents floating around this discussion group. It's a very
simple system for trading stocks, and I've only produced it on the long
side, although short-sale modifications would be easy enough to do.
Here it goes:
TO BUY AT THE MARKET TOMORROW:
1) Today's 10-period percent r reading must be 30% oversold or more - in
EasyLanguage, that is PercentR(10) < 30. For other software, that might
be Percent R(10) > 70... check to see how your software does it.
2) The difference between today's close and today's low must be greater
than the difference between yesterday's close and yesterday's low
3) The difference between yesterday's close and yesterday's low must be
greater than the difference between the close two days ago and the low
two days ago
4) To close out, sell the position at the close after 7 days
The EasyLanguage Code for all this is:
IF PercentR(10) < 30 AND Close - Low > Close[1] - Low[1] AND Close[1] -
Low[1] > Close[2] - Low[2] THEN BUY TOMORROW AT THE OPENING
IF BarsSinceEntry(0) > 6 THEN SELL AT THE CLOSE
For some stocks it works fantastic, 70%, 80%, 100% of the time you end
up with a profit ... for other stocks its more like 60%, 50% while there
are some outliers that have 30% or 40%.
I'm offering this system as an idea -- I know I enjoy reading about
other people's ideas for trading equities and futures, and this one
might give you or other traders some ideas on how to make a better
system.
Some improvements might be trailing stops, refinements to the entry
mechanism, etc. I would like hearing about any ideas from others ...
good luck trading!!!
Mike Strupp
combat@xxxxxxxxxxx
|