Bowling for Pennies

Discussion in 'Strategy Development' started by August, Feb 8, 2007.

  1. August


    This thought / challenge was inspired by the Tradestation software fee requirement but then became a reall curiousity of strategy.

    Only bother with this if you like puzzles of sorts otherwise it will just annoy you.

    If you had to trade 5000 shares at 1 penny per share with the goal simply to break even (profiting is okay, but losing is not). But not more than 2 hours spent at the computer trading).... what would you do?

    What would your tactic be to scalp enough cents off in order to pay for the penny per share commission?

    You're minimum trade has to be 100. Your maximum in a position is 10k.

    One potential example would be: guess the trend on the 1 minutes chart on a $40 dollar stock with high volume. buy 200 shares with a 2 cent stop loss and a 4 cent target. - do this 25 times.

    What's your bet? The more specific, the better.
  2. Solution!........ (1): Transfer your account to a firm that doesn't impose an inactivity fee. (2) Identify the 3 critical times of the day when the market is highly likely to reverse. Trade during those 'windows" and your problem should be easily solved.