It is NOT impossible to make money in the markets.

Discussion in 'Strategy Development' started by TheRumpledOne, Aug 24, 2006.

  1. Actually, it is SIMPLE to make money in the markets.

    "THE HIGH IS USUALLY HIGHER THAN THE OPEN AND THE LOW, LOWER."

    That is a simple statement that can make you all the money you'll ever need.

    MILK THE (GOOG) COW STRATEGY:

    "Trade GOOG at/near the open, at/near the open price."

    1) Trade - go long or short.. I say it doesn't matter so pick one. Smart money FADES THE GAP!!

    2) GOOG - that's the ticker for GOOGLE, that's not vague.

    3) at/near the open, that would be 9:30 AM Eastern time.

    4) at/near the open price, that would be the price of the FIRST trade of the day for GOOG.

    The above strategy DOES NOT take DrawDown, Risk Tolerance, Risk/Reward and Money Management into consideration.

    Draw Down... I don't care. What I look for is whether or not each entry had the potential to make a profit(run up).

    Risk Tolerance... use whatever calculation you want. Up to the individual.

    Risk/Reward... use whatever calculation you want. Up to the individual.

    Money Management... use whatever calculation you want. Up to the individual.

    Add your own rules to make the MILK THE COW STRATEGY stay within your DrawDown, Risk Tolerance, Risk/Reward and/or Money Management criteria.

    If GOOG is out of your price range then trade AAPL.

    If you don't believe this is true then go to finance.yahoo.com and enter GOOG or AAPL. Click on HISTORICAL PRICES. Then select whatever date range you want. Download the data to EXCEL.

    Enter a couple of simple calculations to compute HIGH - OPEN and OPEN - LOW.

    Then sort by the HIGH - OPEN column. Count how many days has a number less than .10. Do the same for OPEN - LOW. Of course, you can enter a formula in a couple of columns and compute this result.

    The number of days of .10 or less will be less than 10%. Vegas would kill for these odds.

    That means STATISTICALLY you have a 9 out of 10 chance of making $.10 or more on the trade.

    If you want, calculate the averages for HIGH - OPEN and OPEN - LOW. Divide by 2 and use that as your target exit.

    This is how you MILK THE "CASH" COWS!
     
  2. Here's proof...

    See the GAP MESSAGE.

    It tells me which way to trade.

    See the HiOP (High - Open) and OpLo (Open - Low) columns.

    That's where the money is.

    It is like this everyday!

    These indicators for TradeStation can be found at www.kreslik.com for free!!
     
  3. Agassi

    Agassi

    come on guys.. i need every body to get on this discussion.
     
  4. Dude you been pushing your systems all over the Tradestation forums now you are pumping it here as well???


    Enough bro....:confused:
     
  5. spinn

    spinn

    You could go 9/10 with that method and lose 20 times your winners on one trade on a trending day the wrong way.
     
  6. spinn:

    Your money management/stop loss should prevent that from happening.
     

  7. Stop right there.


    You have been discredited.
     
  8. It's pretty much a loser.

    Here's AAPL, long only, buy 1000 shrs at the Open if the Open is Less Than the Previous Close (gap down).

    Sell at a limit $0.10 higher than the Open (entry). If limit is not hit, Sell at Close.

    Code:
    	Long + Short	Long Only	Short Only	Buy & Hold	
    Starting Capital	$200,000.00	$200,000.00	$200,000.00	$200,000.00
    Ending Capital	$191,639.90	$191,639.90	$200,000.00	$1,433,577.25
    Net Profit	[b][color=red]$-8,360.10[/color][/b]	$-8,360.10	$0.00	$1,233,577.25
    Net Profit %	-4.18%	-4.18%	0.00%	616.79%
    Annualized Gain %	-0.85%	-0.85%	0.00%	48.34%
    Exposure	0.00%	0.00%	0.00%	100.00%
    				
    Number of Trades	528	528	0	1
    Avg Profit/Loss	$-15.83	$-15.83	$0.00	$1,233,577.25
    Avg Profit/Loss %	0.03%	0.03%	0.00%	617.46%
    Avg Bars Held	1.00	1.00	0.00	1,254.00
    				
    Winning Trades	418	418	0	1
    Winning %	79.17%	79.17%	N/A	100.00%
    Gross Profit	$33,169.90	$33,169.90	$0.00	$1,233,577.25
    Avg Profit	$79.35	$79.35	$0.00	$1,233,577.25
    Avg Profit %	0.57%	0.57%	0.00%	617.46%
    Avg Bars Held	1.00	1.00	0.00	1,254.00
    Max Consecutive	21	21	0	N/A
    				
    Losing Trades	110	110	0	0
    Losing %	20.83%	20.83%	N/A	0.00%
    Gross Loss	$-41,530.01	$-41,530.01	$0.00	$0.00
    Avg Loss	$-377.55	$-377.55	$0.00	$0.00
    Avg Loss %	-2.05%	-2.05%	0.00%	0.00%
    Avg Bars Held	1.00	1.00	0.00	0.00
    Max Consecutive	4	4	0	N/A
    				
    Max Drawdown	$-14,970.00	$-14,970.00	$0.00	$-738,243.63
    Max Drawdown %	-7.25%	-7.25%	0.00%	-49.73%
    Max Drawdown Date	8/21/2006	8/21/2006	N/A	7/14/2006
    				
    Wealth-Lab Score	0.00	0.00	0.00	24.30
    Profit Factor	0.80	0.80	0.00	INF
    Recovery Factor	0.56	0.56	N/A	1.67
    Payoff Ratio	0.28	0.28	0.00	INF
    Sharpe Ratio	-0.41	-0.41	0.00	1.17
    Ulcer Index	1.64	1.64	0.00	22.45
    Wealth-Lab Error Term	0.63	0.63	0.00	24.41
    Wealth-Lab Reward Ratio	-1.35	-1.35	N/A	1.98
    Luck Coefficient	2.15	2.15	0.00	1.00
    Pessimistic Rate of Return	0.92	0.92	0.00	0.00
    Equity Drop Ratio	0.00	0.00	0.00	0.10
    
    
    Position	Symbol	Shares	Entry Date	Entry Price	Exit Date	Exit Price	% Change	Net Profit	Bars Held	Profit/Bar	Entry Signal	Exit Signal	Cum Profit	MAE %	MFE %	
    	Long	AAPL	1,000	1/5/2006	74.83	1/5/2006	74.38	-0.63	-470.00	1	-470.00			1,819.96	-1.44	0.09
    Long	AAPL	1,000	1/18/2006	83.08	1/18/2006	83.18	0.10	80.00	1	80.00			1,899.96	-1.48	1.17
    Long	AAPL	1,000	1/19/2006	81.25	1/19/2006	81.35	0.10	80.00	1	80.00			1,979.96	-3.09	0.50
    Long	AAPL	1,000	1/30/2006	71.17	1/30/2006	71.27	0.11	80.00	1	80.00			2,059.96	-0.42	7.63
    Long	AAPL	1,000	2/1/2006	74.95	2/1/2006	75.05	0.11	80.00	1	80.00			2,139.96	-0.41	2.01
    Long	AAPL	1,000	2/2/2006	75.10	2/2/2006	75.20	0.11	80.00	1	80.00			2,219.96	-4.06	0.35
    Long	AAPL	1,000	2/13/2006	66.63	2/13/2006	66.73	0.12	80.00	1	80.00			2,299.95	-2.99	0.18
    Long	AAPL	1,000	2/15/2006	67.16	2/15/2006	67.26	0.12	80.00	1	80.00			2,379.95	-0.61	3.66
    Long	AAPL	1,000	2/17/2006	70.30	2/17/2006	70.40	0.11	80.00	1	80.00			2,459.95	-0.98	0.84
    Long	AAPL	1,000	2/22/2006	69.00	2/22/2006	69.10	0.12	80.00	1	80.00			2,539.95	-1.45	3.87
    Long	AAPL	1,000	3/2/2006	68.99	3/2/2006	69.09	0.12	80.00	1	80.00			2,619.95	-0.46	1.45
    Long	AAPL	1,000	3/3/2006	69.40	3/3/2006	69.50	0.12	80.00	1	80.00			2,699.95	-2.69	0.73
    Long	AAPL	1,000	3/6/2006	67.69	3/6/2006	65.48	-3.29	-2,230.00	1	-2,230.00			469.95	-4.06	0.04
    Long	AAPL	1,000	3/8/2006	66.29	3/8/2006	66.39	0.12	80.00	1	80.00			549.95	-1.42	1.37
    Long	AAPL	1,000	4/4/2006	62.10	4/4/2006	62.20	0.13	80.00	1	80.00			629.94	-1.69	0.19
    Long	AAPL	1,000	4/7/2006	70.93	4/7/2006	71.03	0.11	80.00	1	80.00			709.94	-3.47	0.39
    Long	AAPL	1,000	4/13/2006	66.34	4/13/2006	66.44	0.12	80.00	1	80.00			789.94	-0.80	1.66
    Long	AAPL	1,000	4/24/2006	66.85	4/24/2006	65.75	-1.68	-1,120.00	1	-1,120.00			-330.06	-2.02	0.10
    Long	AAPL	1,000	4/27/2006	67.73	4/27/2006	67.83	0.12	80.00	1	80.00			-250.06	-0.56	3.14
    Long	AAPL	1,000	5/9/2006	71.82	5/9/2006	71.92	0.11	80.00	1	80.00			-170.06	-1.67	1.03
    Long	AAPL	1,000	5/12/2006	67.85	5/12/2006	67.95	0.12	80.00	1	80.00			-90.06	-1.46	1.24
    Long	AAPL	1,000	5/15/2006	67.37	5/15/2006	67.47	0.12	80.00	1	80.00			-10.06	-0.37	1.50
    Long	AAPL	1,000	5/17/2006	64.71	5/17/2006	64.81	0.12	80.00	1	80.00			69.94	-0.99	1.53
    Long	AAPL	1,000	5/22/2006	63.87	5/22/2006	63.97	0.13	80.00	1	80.00			149.93	-1.72	0.19
    Long	AAPL	1,000	5/24/2006	62.99	5/24/2006	63.09	0.13	80.00	1	80.00			229.93	-2.27	1.05
    Long	AAPL	1,000	5/26/2006	64.31	5/26/2006	64.41	0.12	80.00	1	80.00			309.93	-1.82	0.39
    Long	AAPL	1,000	5/30/2006	63.29	5/30/2006	61.22	-3.30	-2,090.00	1	-2,090.00			-1,780.07	-3.27	0.02
    Long	AAPL	1,000	6/5/2006	61.15	6/5/2006	60.00	-1.91	-1,170.00	1	-1,170.00			-2,950.07	-1.93	0.00
    Long	AAPL	1,000	6/8/2006	58.44	6/8/2006	58.54	0.14	80.00	1	80.00			-2,870.07	-2.21	4.26
    Long	AAPL	1,000	6/14/2006	58.28	6/14/2006	58.38	0.14	80.00	1	80.00			-2,790.07	-2.73	0.86
    Long	AAPL	1,000	6/15/2006	57.30	6/15/2006	57.40	0.14	80.00	1	80.00			-2,710.07	-0.96	4.26
    Long	AAPL	1,000	6/16/2006	58.96	6/16/2006	59.06	0.14	80.00	1	80.00			-2,630.08	-2.44	0.39
    Long	AAPL	1,000	6/28/2006	57.29	6/28/2006	56.02	-2.25	-1,290.00	1	-1,290.00			-3,920.08	-3.28	0.02
    Long	AAPL	1,000	6/30/2006	57.59	6/30/2006	57.69	0.14	80.00	1	80.00			-3,840.08	-1.89	0.28
    Long	AAPL	1,000	7/5/2006	57.15	7/5/2006	57.25	0.14	80.00	1	80.00			-3,760.08	-1.03	0.79
    Long	AAPL	1,000	7/7/2006	55.48	7/7/2006	55.58	0.14	80.00	1	80.00			-3,680.08	-1.46	1.93
    Long	AAPL	1,000	7/12/2006	55.17	7/12/2006	52.96	-4.04	-2,230.00	1	-2,230.00			-5,910.08	-4.08	0.13
    Long	AAPL	1,000	7/13/2006	52.03	7/13/2006	52.13	0.15	80.00	1	80.00			-5,830.08	-1.19	4.02
    Long	AAPL	1,000	7/21/2006	59.82	7/21/2006	59.92	0.13	80.00	1	80.00			-5,750.08	-0.30	2.22
    Long	AAPL	1,000	8/1/2006	67.22	8/1/2006	67.32	0.12	80.00	1	80.00			-5,670.08	-1.90	1.06
    Long	AAPL	1,000	8/3/2006	67.91	8/3/2006	68.01	0.12	80.00	1	80.00			-5,590.09	-0.15	3.08
    Long	AAPL	1,000	8/4/2006	67.05	8/4/2006	67.15	0.12	80.00	1	80.00			-5,510.09	-3.12	2.33
    Long	AAPL	1,000	8/7/2006	67.72	8/7/2006	67.82	0.12	80.00	1	80.00			-5,430.09	-2.08	2.78
    Long	AAPL	1,000	8/8/2006	67.09	8/8/2006	64.78	-3.47	-2,330.00	1	-2,330.00			-7,760.09	-3.85	0.03
    Long	AAPL	1,000	8/10/2006	63.25	8/10/2006	63.35	0.13	80.00	1	80.00			-7,680.09	-0.87	2.47
    Long	AAPL	1,000	8/11/2006	63.23	8/11/2006	63.33	0.13	80.00	1	80.00			-7,600.09	-1.03	1.42
    Long	AAPL	1,000	8/21/2006	67.30	8/21/2006	66.56	-1.13	-760.01	1	-760.01			-8,360.09	-1.71	0.01
    
    
     
  9. thats amazing wealth lab tests

    how about you reverse the shorts with the longs

    since your average shorts lost $400
    longs made $78 lol
     
  10. Gaps filled...
     
    #10     Aug 25, 2006