Easy Money Strategy

Discussion in 'Strategy Development' started by Digs, Dec 3, 2003.

  1. Digs


    Following these stocks over the last three weeks


    The all have the same pattern...

    Stock 40 day average Volume in under 400k approx, just recently on a huge breakout day the volume exploded into the millions as the price gapped up and run up $2 or $3 dollars on some exiting news. The intraday pattern was in the nature of a rally to 10.00 - 10.30am, a flattening off to about 11.00 - 11.30 am, then a price surge on volume to new highs. Entry would be on the breaking of the 10.00 am high if price showed volume support.

    Most of these stock where found on either Briefing.com or realtimetraders.com before the bell info.

    So the issue to have a scanner that finds these volume breakoust realtime.

    1) Symbols coverage : 2000 symbols minimum
    2) Realtime data feed for 2000
    3) Software scanner

    Esignal only allows 1000 symbols max.
    Tradestation only allows 1000 symbols max for scanning realtime. ( they are talking about increasing this, but I dont trust there software preformance for realtime scans)

    Anybody doing the above, please advise how you managed to build your system.

    I thinking of doing this...

    1) 2x Esignal subscriptions, one per computer ( I have two powerful computers)
    2) Build my one volume breakout/gapper scanner in MS Visual basic 6.0...

    Any ideas
  2. this works only in the little bull rally we got going on here (which is about to end???)
  3. this sounds awfully like "yo its simple buy every break up intraday" of 99.
  4. Digs


    Rubbish, during the 1930 depresssion 30% of all stocks actuall rallied during the 1930's decade, 70% fell.

    If there is a stock that is $2 - $20 that has red hot news and traders think it will buck the trend of the index, then yes they will buy it BIG on the news, So I think large volume break outs in a bear market either will still exist. But I do agree that there may be less of them per week in a Depression bear market than a strong bull market. But the will be there....
  5. lindq


    You asked for ideas, and TraderKay just replied with solid advice, which is that what you are seeing is largely a result of the strong bull run we've had.

    Your reponse is..."Rubbish?"

    Tell you what. You trade your "breakouts on the news" for a few months, and you won't have money left for an internet connection. Then we won't have any more of your rudeness.
  6. Digs


    Sorry for using the word rubbish, please replace that with "I strongly disagree"....
  7. Rudeness?

    If you think someone saying "rubbish" is rude, I hope you are NEVER in a position where someone is REALLY rude.

    You are in for quite a shock.
  8. dbphoenix


    At least Digs provides some evidence that his idea may have some merit. Neither traderkay nor lindq are able to provide anything but opinion.

    Before saying "this can't work" or "this is the result of the current bull run and nothing else", have something to back it up other than something you just read somewhere.
  9. Digs


  10. GSCO


    a good trader can make money using a worthless strategy.

    Good money management dude. Cut your losses, let your winners run.

    good luck
    #10     Dec 3, 2003