Because TE is trying to get you to think for yourself â And you canât help someone learn to think for their self â by telling them what to think Everything you assert in this post I can find a post by TE that is the direct opposite â but yet you persist... AND ignore realityâ¦. It was painful for me the first time â unfortunately things are no better now⦠RN
What is a traderâs number one⦠most important⦠uno numero⦠top⦠most important⦠all consuming⦠PRIORITYâ¦â¦ eta - When you get the answer - drill it into your head.... RN
TE: Re: automatic scans I have setup scans for minimum ADR, price ranges that correspond to my account size as well as % of 30 day average volume compared to current volume ie trying to see if / where "the generals" might be leaving their tracks. This still brings up a fair few stocks (30+), any recommendations on how to further bring this down to a manageable level as they are seem like ideal trading candidates ie what can i look out for to further bring it down ? I am thinking last daily range is a NRB so potential for WRb is greater --------------------- DT is the only one who seems to have taken the AR seriously, and actually set up his own little automated scans ---------------------
I use the free screener Finviz to do initial screening for various criteria and obtain a csv file containing ticker symbols plus a lot of unimportant crap. Unfortunately Finviz can screen ATR but not daily range or ADR. Then I use my own code in matlab (I doubt many here have heard of that) to extract the tickers and get the historic shareprice data from Yahoo and calculate and plot ADR and an estimate of volatility. The result is lots of jpg files which are viewed with the free Faststone image viewer which can generate contact sheets, one page of which is attached below. The process takes me a few minutes. The next step is visual inspection to select for AR.
I think its more correct to state that the idea of price reverting to the mean is just a misconception perpetuated by those who propose unscientific explanations of the world. I recall Dr BB of Top Dog Trading giving away a free setup called the 'rubber band method' in one of his free introductory videos. He claimed that price reverts to a 50 period MA. In fact I couldn't find examples for which that occured as often as he claimed, and it occured to me that he had in fact used a smaller period MA and was possibly making false claims. That together with nonsensical statements like 'energies coming together' when describing various indicators shattered any illusions that his courses were of value. The simple fact is that if price meanders about, then by choosing a small enough period MA then there will be crossings of price and the mean because the mean is able to catch up with the price, and not because price reverts to the mean. So there is no need to invoke a self-fulfilling prohecy. Its entirely possible that money can be made by assuming the idea of price reverting to the mean, its just a fallacious idea and avoids deeper thinking to understand the reality.