novacane32000
331 posts
msg #100886
- Ignore novacane32000 |
5/24/2011 3:38:57 PM
How do you work around the fact that most stocks follow the market up or down when you build a filter.
Long filters work great in a bull market.
Short filters work great in a bear market.
Sideways market ??
A while back someone was kind enought to show me how to attach a "SP500 Indicator" filter. Is that the answer?
How do you decide?
|
jimvin
179 posts
msg #100899
- Ignore jimvin |
5/25/2011 2:10:49 PM
For what its worth, I always trade short; in Monday at open, out Friday at 3:30...except in this market out no later than Thursday at 3. (Even out Monday if I hit a good return). Buying between 5 and 10 stocks, average return is around 3% a week. Not to shabby...
|
novacane32000
331 posts
msg #101102
- Ignore novacane32000 |
6/6/2011 2:14:28 PM
You trade short only in both a bullish and bearish market? Do you have a screen for making your short picks?
|
jimvin
179 posts
msg #101227
- Ignore jimvin
modified |
6/12/2011 9:26:17 PM
Sorry for the delay.
I trade short no matter what the market conditions. I need a 2% return each week in order (frankly) to get rich in a reasonable period of time (3-5 years). The filters I use vary depending on market conditions; some filters that worked wonderfully well in February collapsed in April; in May I started again with an entirely new set of filters and began building systems around those. If you're looking for a good method the best advice I can give is, pick some of the filters/systems here based on their % returns and test them for 4 to 6 weeks using your trading style and see what works best. (As noted in a previous post, I've tested hundreds of filter over the last 2 years.)
For example, I would take any given filter and overlay my preferences in MACD pattern, candlestick pattern, etc. (You may want to add P&F charts - although I haven't found them to be very effective a predictive since about March - or other technicals).
Stockfetecher has a good backtesting tool, but it doesn't fit the details of my trading style, that's why I prefer to test in real markets.
|