Hello guys, I am a Finance PhD student, and I found a very interesting trading system that can correctly predict stock movement around earnings announcements. I backtested the idea and it works very well. The system picks stocks with about 80% correctness. I am thinking of not publishing the idea but start investing with the system with a plan to open my hedge fund in the future. I will be publishing my picks in this forum to get some recognition, which I think will be useful if I decide to open a hedge fund. I will not edit any of my posts to keep myself accountable. Hence, if you find some grammatical errors in my post please be a little lenient about them. My first recommendation: Buy today (2.26.2021) TGT (Target Corporation) before close and keep it until Monday (3.1.2021) close. If the stock does not go up on Monday, you need to keep it until the next day after the announcement (3.3.2021) and sell before close that day. I do not expect that you invest in this stock based on my first recommendation. Moreover, I do not recommend doing it. But I suggest adding my recommendation to your calendar and see what happens. Probably after about a month when I will have about 20-30 posts you can make your judgment. I will be publishing my new recommendations as soon as my system picks a new one.
Well, we'll try to help you then, since you seem to not want to post actual prices. TGT "before the close". Well, you posted this thread after the close, so let's look at the range. 182-186. Great. A nice narrow 400-tick range to work with. But let's just pick right before the close. Say, $183.80? See you on the "before the close" on Monday then, or if it is down on Monday then day after which according to you is March 3rd, whatever time that may be! Where March 2nd went we do not know, but it's in there somewhere I am sure!
My system cannot give an exact time to buy. It is the best that I can do) 183.8 is good). You can sell on March 2nd, but according to my system, March 3rd gives you the best return.
Okay, so, your system is that if the trade loses money, then you keep it until, what, it hopefully makes money the next day? And this is the pinnacle of your PhD finance studies?