Jeff Cooper 5-Day on Steroids

Discussion in 'Educational Resources' started by Sophomore Jinx, Aug 28, 2002.

  1. I'm curious if anyone has traded using Jeff Cooper's 5-Day Momentum Method. I'm thinking of testing it as the underlying for making short-term options trades. Any input would be appreciated.
  2. momo days are long gone. But the principle is to find a trending stock, long or short, wait for a pullback, and enter upon the resumption of the trend. The 5 day thing is just juice for sales(of his method)
  3. axehawk


    A buddy of mine use to subscribe to Jeff Pooper's recommendations. My buddy used to forward the emails to me every day. I would watch, but never trade his picks (I don't like unecessary overnight risk). It worked a little bit in the "old days". You'd get stopped out 5 times in a row @ 2-3 points a pop, and then hit a NASDAQ flyer for 10, 20, and sometimes 30 points.

    The funny thing is, my buddy went to a seminar and met him. Jeff doesn't even trade his own recommedations! He closes his positions out every day.

    I doubt any of his subscribers have made any $$$ in the past 2 years. They all probably churned their asses off in this market.

  4. I appreciate the response.

    Conceptually, I'm thinking the method is probably still fairly timeless because of the basic logic of it; as you mentioned, it's simply about finding a trending stock that's pulled back, with specific rules defining the parameters. My aim is to find explosive short-term options trades lasting 3-7 days, making 2-3 trades per week.

    Any further comments would be great.
  5. I'm not a big fan of following gurus, either - I'm just looking for an underlying basis that can provide an edge for the options strategy - which will hopefully have its own edge. A successful pro trader buddy of mine recommended this book to me, but I'm interested in getting as much feedback as I can before I put time and effort into researching/testing it.
  6. vikana

    vikana Moderator

    I backtested the 5day method a while back. No clear edge that I could see.
  7. Thanks Vikana. The feedback is appreciated.

    If you could detail how you tested it, that would really be insightful. I was planning to tweak the criteria - namely, test only stocks priced over 60, which Cooper admits improves the results – and possibly add another filter relating to the direction of the larger index, either up or down. Then, of course, the options strategy would have its own set of criteria.

    Thanks again for the response.
  8. Like is a good theory, you just have to take what you can from it and put it in your "tool" chest.