rrochon
117 posts
msg #26896
- Ignore rrochon |
6/16/2003 3:16:08 PM
Shelshel,
Are you still using the modification to Muddy's original screen, where you place your order to buy the lowest price candidate at the open, and limit the price to between 5 and 10?
If so, what have your recent results been, and do you use the rest of Muddy's formula as it is?
I also would like to be able to buy automatically and not have to keep a constant watch on the candidates and try to determine which would be the best play if two or more go green at the same time.
A purely mechanical method that works would be nice, even if it did not produce quite the results that fine tuning would.
Regards,
Dick (rrochon13@attbi.com)
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shelshel
11 posts
msg #26902
- Ignore shelshel |
6/16/2003 11:23:16 PM
Rrochon,
Actually I have modified how I pick my stocks. I've done additional research and came up with a method that is still mechnical based on the bollinger bands but gives better percentage gains while still providing an excellent win/loss ratio. Instead of 3 down days I opted for 4 and I also lowered my price to between 1 and 10.
SHOW STOCKS WHERE CLOSE HAS BEEN DECREASING OVER THE LAST 4 DAYS
AVERAGE VOLUME(90)IS ABOVE 100000
CLOSE PRICE IS BETWEEN 1 AND 10
PRICE TOUCHED LOWER BOLLINGER BAND(20)
Each evening I get a list of stocks, (usually not more than 6 and sometime only a couple), and I rank them. I'll give a 1 to the highest volume stock, then 2 to the second and so on. Next I give a 1 to the stock with the lowest Money Flow Index (15) score and 2 to the next higher until all the stock are ranked. Add up the totals and the stock with the lowest score is purchased the night before using a market order. I place my order the night before because I'm at work and can't watch the market. If 2 stocks have the same total score I'll select the stock with the lowest MFI score being this should be the most oversold stock. So far I've purchased 20 stocks with 18 winners and 2 losers thus far. I've sold 2 stock with one having a gain of 33% and the other 27% and I'm sitting on 5 stocks that are over 30% with 2 over 50%. I will put in stop orders when the RSI is 70 or above, MFI over 80 and the slow stochastic is over 80. If I see the DMI lines start to go the other way or cross I'll also put in a stop order or sell. This way I can preserve my gains. I will also limit my losses to 15%. If a stop order was placed and the stock price goes up the next day I'll increase my stop.
If you go back over the past week, month or even farther you can see how this filter has performed.
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todddunning
31 posts
msg #26909
- Ignore todddunning |
6/17/2003 3:11:06 AM
Shelshel please join us at http://groups.yahoo.com/group/StockFetcher/
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shelshel
11 posts
msg #26911
- Ignore shelshel |
6/17/2003 6:23:28 AM
I've already joined just a few days ago.
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wallman
299 posts
msg #26912
- Ignore wallman |
6/17/2003 6:43:37 AM
SHELSHEL,congrats on your results so far,this is exactlly why i'm glad the group was started,to see what creative ideas we can get out of this method,even if one never places a trade with our methods,it could open ones eyes to things so obvious but overlooked,even after many years of trading....much thanks for sharing,MUDDY
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jprowe
17 posts
msg #26913
- Ignore jprowe |
6/17/2003 8:32:37 AM
shelshel,
Did you get RNWK as the 'play' for Tuesday? Sorry to bother you, just checking my process....
Thanks,
Jon
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dabonenose
26 posts
msg #26917
- Ignore dabonenose |
6/17/2003 3:11:15 PM
JPRowe,,,I took a look at shelshel filter and applied it to rnwk,fcse,kana,glbl,,,with rnwk and kana a tie at 3points. Considering the lowest MF,,,KANA would be the choice.
Dab
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rrochon
117 posts
msg #26924
- Ignore rrochon |
6/17/2003 4:39:28 PM
Shelshel,
Thanks for the update. If the price drops 15% after you buy, or the RSI, MFI or Slow Stoch go over your limits, do you sell immediately, just before the close, or on the open the next morning.
Evidently you do not use the price of the stock, or whether the volume has been increasing the last 3 days, or whether the candlestick had a long tail in making your selections. Correct?
Do you try to trade everyday, once a week, or what?
And how do you divide your trading money up? Same $ amount, same number of shares, a % of your money, etc.?
Sorry for so many questions, but when someone is successful I want to do exactly what they are doing.
Thanks,
Dick
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shelshel
11 posts
msg #26927
- Ignore shelshel |
6/17/2003 9:48:49 PM
Rrochon,
If a stocks closing price is starting to approach an 8% loss from where I bought it I'll set a stop loss for the next morning to where it will equal a 15% loss. Since these stock can be volatile I'll give them a little leeway.
Your correct in that I don't look for volume increasing for 3 days or candlesticks with a long tail. I figure if a stock is touching the lower bollinger band and has already been down for 4 days it's probably oversold or pretty close to it. The MFI shows me how oversold the stock is. This is why I give the highest volume stock a ranking of 1 (volume will drive a stock) and a ranking of 1 for the lowest MFI stock (most oversold stock). Hopefully with this combination a rebound will occur soon.
I usually buy 1 stock each evening using the same dollar amount. As I sell off my most overbought stocks this gives me additional funds to purchase more. As of late though ,everytime I place a stop order the stocks keep going up the next day, not that I'm complaining. The beauty of this filter is that you don't need to purchase everyday. If at some point I don't have the funds to purchase more I just wait until the time is right to take some profits and use this money to purchase more.
Hope this helps.
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jprowe
17 posts
msg #26928
- Ignore jprowe |
6/17/2003 10:41:30 PM
DAB,
Thanks for the feedback. It looked to me that RNWK MFI was about 15 and KANA was 20. So I went with RNWK for the play. The markers on the side are a little confusing (using Stock Fetcher anyway) since I can't get an exact number (need to count the little lines):(
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