mahkoh
1,065 posts
msg #104586
- Ignore mahkoh
modified |
1/22/2012 3:30:16 AM
.
|
mikea59
7 posts
msg #104589
- Ignore mikea59 |
1/22/2012 3:15:03 PM
I'm a newbie here, but I've been following Kevin's systems for a little while - all quite impressive. Anyway, I have some quesitons about this gap system - assuming the long version only:
- Is this a pure "gap" system? In other words, are you only looking for a Monday morning opening gap > 2%, or would your system trigger anytime on Monday if the stock traded 2% lower than the Friday close?
- I'm interested in the mechanics of trading this thing. If you get a list of several dozen stocks over the weekend, it's not likely that you can enter a trade near the opening price on Monday morning on your top 5 unless you had some kind of automated trading platform. So, what would be your specific plan for Monday morning? If you found several stocks that met your entry criteria, would you just do a limit order at the opening, would you go long anytime during the day if you could get an entry at or below the opening price - where the opening was a 2% gap?
|
Kevin_in_GA
4,599 posts
msg #104591
- Ignore Kevin_in_GA |
1/22/2012 7:05:41 PM
Mikea59:
1. It is a pure gap system - the stock must open at least 2% below the previous Friday close to trigger a BUY.
2. Several dozen is an underestimate. For tomorrow, there are 150 potential plays for gaps down, and 135 plays for gaps up. You can enter any stock the gaps up or down enough to trigger a signal, using a limit order at the open price - in theory this can fill at any time during the next few days, but if the gap is filled first the stock should be discarded.
Kevin
|
niajy
13 posts
msg #104596
- Ignore niajy |
1/23/2012 7:26:01 AM
Kevin, you said no more than 5 positions opened every week.. but what is the 2nd criterion to chose the stock? by volume?
i mean if you have more than 5 stocks when gapfill is > 0.7 and more than 5 when the gap was more than 2%, how do we select stocks?
|
Kevin_in_GA
4,599 posts
msg #104597
- Ignore Kevin_in_GA |
1/23/2012 7:36:55 AM
The system selects by PCT_GAPFILL descending. In real life this would be hard to do, but the goal is to look at those stocks whose percent of gaps filled over the last 80 weeks has been the highest.
An analogy - you're playing basketball, and the other coach got a technical foul called on him for bad behavior. You get two free throws. Looking down your roster, who do you select to shoot them? Your best foul shooter, of course.
|
sohailmithani
192 posts
msg #104598
- Ignore sohailmithani |
1/23/2012 9:25:58 AM
But Kevin %gapfilled stocks are also too many. How to chose, I am not sure. Can you pls share with us the ones you trade today? Thanks
|
mikea59
7 posts
msg #104600
- Ignore mikea59 |
1/23/2012 9:49:55 AM
I used mmaurice's suggestion - loaded the symbols into a Google Spreadsheet and used the GoogleFinance functions to find gappers. Today I found no candidates for the long system out of the 145 or so that were generated over the weekend. So, as far as I can tell, there are no long candidates this week. I did not look at the short system.
Can anyone confirm these results?
|
sohailmithani
192 posts
msg #104601
- Ignore sohailmithani |
1/23/2012 9:55:31 AM
I see only BLDR gapped over 2% (8.4% from Friday close). Can anyone confirm my result pls.
Thnkx
|
mmaurice
51 posts
msg #104603
- Ignore mmaurice
modified |
1/23/2012 10:14:13 AM
mikea59 I confirm your results. I got the same.
See you next week.
|
Kevin_in_GA
4,599 posts
msg #104604
- Ignore Kevin_in_GA
modified |
1/23/2012 10:29:56 AM
BLDR signaled a BUY, and has already closed the gap (in at 2.29 and closed at 2.50).
EDIT: I look at Yahoo and Marketwatch and I see a different open price (2.46 instead of 2.29 as SF lists). At 2.46 open price this does not qualify. Can someone confirm?
This is not an issue with the filter, but rather a possible issue with SF's data feed.
For the Gap Up, I got 11 candidates, of which the following would be selected:
SPRT - gaps filled at 100%
TLB - gaps filled at 100%
OMEX - gaps filled at 90%
LPHI - gaps filled at 88%
SVNT - gaps filled at 83%
Not sure how one can select just these and get the open price in actual trading - just seeting a limit order at 2% above the previous Friday close means you get that price and miss any higher gap up, which could impact profitability.
Let's see how these play out over the course of today and the rest of this week.
Kevin
|