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--
M. Edward Borasky znmeb@xxxxxxxxxxxx http://www.teleport.com/~znmeb
If God had meant carrots to be eaten cooked, He would have given rabbits
fire.
-----Original Message-----
From: John Cappello <jvc689@xxxxxxx>
To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
Date: Sunday, January 03, 1999 14:51
Subject: Mechanical Trading Systems For Individual Stocks
>To List:
>
>I have spent the last 2 years finding and/or working with developers
>of systems for commodities.During that time I basically divorced
>myself from trading stocks due to the time commitment necessary to do
>both.I am have been and am currently 90% in commodities and 10% in
>stocks something I would not recommend to my worst enemy but it works
>for me.
>
>I am now looking to diversify with my commodity profits into the stock
>market to attain a more balanced portfolio.To date my web searches
>have not been fruitful in locating systems worthy of evaluation.The
>best "manual system " I formally used was Pitbull based upon CANSLIM
>however I seek a computerized model to trade a basket of active stocks
>or any other worthy computerized non-emotional method.
>
>Any leads this list can provide will be appreciated.
>
>Thanks,
>
>John
>
There are a couple of ways you could go. I assume, since you trade futures,
that you at least recognize the existence of futures and options contracts
on various stock indexes and on various interest rates/bonds/notes. I don't
know whether you've considered trading these, but it would give you exposure
to the equity markets without taking you too far out of your element.
Most of the standard indicators work in the stock market indexes and in
individual stocks. A good book to look at is Colby and Meyers "Encyclopedia
of Technical Market Indicators". They tested just about every public-domain
indicator there is on *weekly* NYSE composite index data over a fairly
lengthy period of time. A few things that have a good reputation in futures
did well in their tests as well. If it were me, I'd pick one or two
blue-chips in different industries and try something like MACD or Wilder's
Directional Movement System (use *weekly* data!). Say Intel or Microsoft,
Coca Cola and General Motors.
You might also want to take a look at Tom Dorsey's book "Point and Figure
Charting". See
http://www.teleport.com/~znmeb/biblio/htm#[Dorsey95]
Point and figure charting has stood the test of time -- it's at least 100
years old, and is just plain fun besides!
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