Interested in a day trading method ?

Discussion in 'Trading' started by traderich, Nov 10, 2005.

  1. I am posting this thread to see if there are any very intelligent traders who visit this site to exam a day trading strategy I have developed over this past year.

    Here are some of the details:

    1) I have between 140-350k in DTBP (day trading buying power). It varies based on how much cash and positions I carry over night.
    this is extremely important as the strategy requires a purchase of 1000 shares of each stock to be reasonably profitable. 500 shares is still profitable but far less, and 100 shares of each stock is a loss over time. More than 1000 shares can require in excess of 500k in trading power on some days.

    2) I buy 'some' stocks in the morning and sell them 'later' in the day. I am leaving out some of the details on purpose.

    3) I do not make a profit on every trade, far from it. In fact, I do not make a profit every day, far from it, however overall, the method is profitable.

    4) Over the past 6 months, the method yielded 'thousands' of profit. I do the exact same thing every single day and have records of each trade. I have the exact bid and ask prices of each stock at the times of importance.

    5) Finally, I am looking for some very bright, mathematical minds that understand and have studied probability and statisics to review my strategy and perhaps help me further 'refine' it to increase the winning trades and overall profitability of this.

    That is as much detail I want to post to the general at this time. If you are a serious trader and would like to talk with me about this via email, send me a personal message with your email.

    I realize this is a public forum, and am willing to discuss some of this in the open.

    I know this is a long shot, but what the heck, maybe there is someone on this site who could offer something worthwhile.



  2. TradeRich,

    I am by far not a seasoned day trader nor do I plan on becoming one in the near future. However, I have studied probabilities and other statistical information rather heavily (that is what I enjoy most about investing) and I believe I am capable of helping you refine your methods to 'some' extent.:p

  3. bighog

    bighog Guest

    Display your methods and surely we can give you advice...GOOD and BAD...:D

    off the top of my head i will say this, high math and quantum physics is not the answer. I know, i use simple stuff, stuff that has been in tons of books.

    What is not in the books is quite simply the psychological gut wrenching learning curve drawn from actual battles. Winning and losing is your real study to dwell on, mistakes are made for one reason, that is to learn from them.

    Print the methods, surely you have no "SECRET WEAPON"....:)
  4. Agreed. KISS works in this business. Unfortunately, the emotional mind is very complicated.

    I have a PhD in Electrical Engineering w/ some emphasis in solid state physics (a branch of physics where quantum physics meets the road so to speak). From personal attempts and failures at using advanced probability models and transforms, I think you may be heading down the wrong path. Honestly though, since I didn't find any success with this does not by any means that you won't succeed (not trying to be at all negative here).

  5. Bravo!!
  6. Why would you lose money trading 100 shares, but make money trading 1000 shares. Slippage on the 1000 shares, depending on the stocks you are trading, could be as much as 30 cents. What am I missing?

  7. 100 shares of wmt sold for a .10 gain = $10 profit - $11 commission.

    1000 shares of wmt sold for .10 gain = $100 - $11 commission

    If he is trading a big cap I doubt he will get much slippage.
  8. If the commission makes the difference between profit and loss the system is worthless.

    Commission can never turn a profitable system in a losing one if the system is sound.

    It's not the math that defines if a system is profitable or not. A system is a combination of factors (charts, emotions, psychology....). It's finding the perfect balance between all these factors that is important. Thta makes a system profitable.
    Analytical thinking and finding relations between the different factors is essential.
  9. If execution costs make the difference in his strategy, the difference between making money and not making money, then I am not sure he has found an exploitable edge. Given the capital constraints he has listed.
  10. I checked the last 5 months of trading my system.
    281 trades in 98 days.
    If i DOUBLE the slippage and the commissions i pay, i still keep 82.54% of my initial profit.

    So commission and slippage have no real impact on returns.
    #10     Nov 11, 2005