| StockFetcher Forums · Filter Exchange · RSI(2): Nice results but no practical | << 1 2 3 >>Post Follow-up |
| jenki 2 posts msg #30908 - Ignore jenki |
1/30/2004 10:36:47 AM I have been trying to implement this indicator as described by HolyGrail et. al. As was mentioned many times by proponents it was necessary to "actually trade" to see the results. Well, in fact the paper trading looked good so I decided to take 10,000$ and give it a try. The results were a bit surprising. After about three weeks (15 trading days) I am about break even. Why? Well, the first thing I noticed was that the stocks that triggered the signal with the previous days close actually built up a lot of interest during the extended trading hours. When these stocks opened they almost always open higher and the famous results we get are exactly those gap ups. Obviously, I get the signal on the stocks to buy the evening of the close, but in the morning when I go to buy them they have already gapped up. Often, I will get a little more up trend, but just as often I will actually lose money even if the stock is up. This is the reason the system looks good, but is not practical. Therefore, I would like to ask whose of you proponents of RSI(2) and ACTUALLY trade it give us a few pointers on how you enter these positions and exit them. Thanks a lot. Jeff |
| jthehut 124 posts msg #30911 - Ignore jthehut |
1/30/2004 2:19:20 PM rsi is a TOOL. There is NO INDICATOR that guarantees the $$$. It is the way you TRADE that makes you the bling-bling. rsi at a low gives you a "potential" entry, not a guaranteed entry. I would read runpledone's old posts on how to trade. There is no magic to any indicator. It's all about the greed and the fear... ~the hut~ |
| jthehut 124 posts msg #30912 - Ignore jthehut |
1/30/2004 2:20:47 PM sorry, "RumpledOne"'s (spelling) old posts |
| txtrapper 548 posts msg #30915 - Ignore txtrapper |
1/30/2004 8:15:47 PM jenki What you are doing jenki is working out a system that works for you, and that's what you have to do, "just do it", seems your system would work if you; 1)buy at the close and sell the opens. 2)buy only when RSI(2) is touching Lower BB line or Lower L/R line. 3)look at your stock picks on 6 and 9 month charts to see if it has actually bottomed. Also check out this site; http://screening.nasdaq.com/heatmaps/heatmap_pmi.asp Hope this helps, TxTrapper |
| keithray 13 posts msg #30917 - Ignore keithray |
1/31/2004 8:59:20 AM Jenki, I have experienced about the same thing with my trades. But, I had a good profit until a few days ago, and I got whacked by the downturn in the market. But, it may still turn out that I will have a good profit...that is yet to be seen and will depend on how well I manage my trades and market conditions. I think you need to take a look at market conditions. Out of the past 15 days, the NASDAQ has only closed higher 4 times. Prior to these 15 days, another 15 day period would have shown 10 out of 15 closings that were up. A lot of the stocks traded by the Muddy Method are NASDAQ stocks. In my opinion, it might be better for some of us less experienced traders to avoid the market when it appears to be declining and wait for a better opportunity. Some have suggested that newbies to the muddy method should take quick 5% profits. All of this will probably depend on your own individual style of trading. I don't like daytrading, and prefer to hold stocks for a week or more. Don't know how many stocks you are holding in your portfolio at one time. I would suggest at least 3 and maybe more...that spreads the risk. You have definetly found a great site and some fantasticly good methods of trading. If you want to make money in the stock market, hang in here, keep trying, and read EVERYTHING! Read it....re-read it..and keep re-reading it. Good trading! Keith |
| dducey 19 posts msg #30922 - Ignore dducey |
2/1/2004 11:21:09 AM For January I increased my trading capital about 5% using the methods. And, this was including some stupid non-muddy trades that lost money. I do daytrade and look for 2% - 5% profit and then I get out. I have been looking at holding for multiple days to increase profit margin but so far haven't been able to resist grabbing the profits. I believe using the entry and exit signals described on the forum IS the way to go but after losing money for so long prior to finding the muddy trades I really have a hard time not taking profits when I see them. I have also seen the effect of the general market on the muddy trades especially the most recent movement. I am looking for a bounce that will allow me to exit some of the NASDAQ trades that are now causing me some pain. |
| keithray 13 posts msg #30943 - Ignore keithray |
2/2/2004 4:34:00 PM dducey, Your experiences seem similiar to mine. When I began trading the Muddy Method, I would often take profits before the end of the day. But, as I felt more comfortable with it, I began holding for 1 or more days. I have been seeing the impact of the market on the Muddy stocks recently, and it has not been good. I am holding 8 stocks(muddies and boxes) and they are down 1.9%. I sure would like to see a good day in the market. :):) Anyway, I am going to hold onto these stocks because the charts still look good. |
| TheRumpledOne 6,411 posts msg #30947 - Ignore TheRumpledOne |
2/2/2004 11:33:17 PM This is simple... don't make it complicated. If you have a profit, TAKE ALL YOU CAN. You never lose when you sell a stock for a profit. Buying at the close and selling at the open works. Just look at a daily chart.... If you see a stock that drops at the close and gaps UP at the open... then BUY THE STOCK AT THE CLOSE AND SELL IT AT THE OPEN! Do NOT wait for the open to buy it and wonder what went wrong!! If you lose money trading RSI(2) stocks, then you have NOT learned how to do it properly. You are either buying when you should be waiting and/or holding long after you should have sold. DON'T BE GREEDY! Just do what the charts tell you to do. NOW GET BACK IN THERE AND TRADE! MAY ALL YOUR FILLS BE COMPLETE. |
| MomsLegacy 34 posts msg #62775 - Ignore MomsLegacy |
5/18/2008 9:14:24 PM Buying at the close and selling at the open works. Just look at a daily chart.... If you see a stock that drops at the close and gaps UP at the open... then BUY THE STOCK AT THE CLOSE AND SELL IT AT THE OPEN! Do NOT wait for the open to buy it and wonder what went wrong!! Hi, I know this post is older than dirt, but this is the strategy that I am lookin to implement for myself. Having viewed these boards for just a short time, I can see thta you are quite revered, and seem to be on top of this stuff. However I'm kind of confused about the statement above. How are you supposed to buy at the close if you see a stock gap up at the open? I don't get it. Also, do you have a filter that will seek stocks set up or indicating a possible gap up at the open? |
| WALLSTREETGENIUS 983 posts msg #62779 - Ignore WALLSTREETGENIUS modified |
5/18/2008 11:48:45 PM - DELETED BY THEMIGHTYRIGGS HIMSELF - |
| StockFetcher Forums · Filter Exchange · RSI(2): Nice results but no practical | << 1 2 3 >>Post Follow-up |
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