Low-Volume Swing System Journal

Discussion in 'Journals' started by zorak, Mar 24, 2003.

  1. zorak

    zorak

    Code:
    Rank	LONG	Last	SHORT	Last
    
    1	VWPT	0.44	SGNT	0.13
    2	PCSA	0.25	ASPX	0.17
    3	DDIC	0.14	PME	0.66
    4	SOI	1.71	TAXI	3.99
    5	PLXT	2.58	MTSN	2.01
    6	RDRT	0.73	MDEA	0.96
    7	HAKI	1.54	ARTX	0.54
    8	ATCO	3.39	CTEC	8.80
    9	GEMS	0.86	TFSM	0.29
    10	NTCT	3.02	EGAN	0.22
    11	XYBR	0.36	MICC	6.61
    12	SCMM	2.68	CLST	7.34
    13	RCNC	0.73	STAT	4.95
    14	ADAT	1.97	APS	0.35
    15	NTPA	1.36	SIPX	3.60
    16	VRSO	0.49	COB	3.98
    17	SOFO	0.37	MAXY	7.68
    18	TMAR	2.50	POSO	0.14
    19	OPNT	5.75	NOVT	8.93
    20	IVIL	0.58	MVIS	4.79
    
    		Time:	3/28/03 3:31 PM	
    
    
    zorak
     
    #21     Mar 28, 2003
  2. zorak

    zorak

    Code:
    DAY	LONG	SHORT	ALL
    3/28	-1.47%	-2.25%	-1.86%
    Total	2.53%	-0.01%	1.26%
    
    zorak
     
    #22     Mar 28, 2003
  3. zorak

    zorak

    Why would my actual fills be automatically worse in a
    volatile market?

    I'm sure my results would be different than paper trading...but
    what about someone who knew what they were doing, or knew
    how to trade low-volume stocks?

    Thanks for the comments, btw.

    zorak
     
    #23     Mar 28, 2003
  4. OK... good luck...
     
    #24     Mar 28, 2003
  5. zorak

    zorak

    Code:
    Rank	LONG	Last	SHORT	Last
    
    1	RCOT	0.22	DDIC	0.14
    2	ADAT	1.75	TFSM	0.31
    3	SOI	1.60	ROBV	0.19
    4	HAKI	1.43	POSO	0.17
    5	RDRT	0.66	MDEA	1.24
    6	XING	2.08	COB	4.03
    7	SGNT	0.11	EGAN	0.23
    8	MTEX	2.55	MCTR	1.75
    9	NPRO	0.65	MTZ	2.16
    10	PLXT	2.40	GLFD	3.80
    11	TRPH	0.21	PRM	2.35
    12	MPH	3.66	SIPX	3.67
    13	RZYM	0.36	STAT	5.10
    14	XXIA	4.80	GERN	5.18
    15	WRLS	5.34	ARDM	1.24
    16	CKR	4.30	HEPH	5.89
    17	EDSN	0.92	UAXS	0.19
    18	SCMM	2.62	MTSN	1.95
    19	TMTA	1.00	KANA	3.99
    20	ASPX	0.16	VLNC	2.15
    
    		Time:	3/31/03 3:30 PM	
    
    
    zorak
     
    #25     Mar 31, 2003
  6. Your fills will be horrible in a fast market for an illiquid stock... have you ever traded before??? The spreads get very wide at times .. and the bids and ask jump around all over the place.. it can move up %5 and down %5 in a few seconds.... this is the reality...

    Yes the results will be very different.. thats why its pointless to continue paper trading it.



    --MIKE
     
    #26     Mar 31, 2003
  7. zorak

    zorak

    Code:
    DAY	LONG	SHORT	ALL
    3/31	2.75%	-2.22%	0.27%
    Total	5.28%	-2.23%	1.53%
    
    zorak
     
    #27     Mar 31, 2003
  8. zorak

    zorak

    Heh, I thought I had been pretty clear that a) I haven't traded
    these lowvolume stocks, and b) I suck at trading in general.
    Thats my stated reason for doing this...to get help from
    someone who doesn't suck at it.

    Is there any level of return for paperport that would
    interest you enough to attempt to find a way to
    trade it?

    What is the minimum average volume a stock must have
    before you would think it possible to trade it?

    zorak
     
    #28     Mar 31, 2003
  9. OK.. let me just give an example...

    Look at RCOT... the stock is trading around 30 cents and trades around 20,0000 shares a day. Do the math.. that means it trades around $6,000 worth a day. LOL

    You can not trade these kinds of stocks nor can you backtest them or paper trade them.. period.

    I am an experienced trader and would urge you to avoid these low volume stocks and setup a filter....

    Here is the min. you should be looking at..

    50,000 per a day in avg volume

    Stock price > $1.

    -- This means that the stock will be trading a min. of $50,000 per a day.

    Personally, I would only go long a stock that is greater than $1 and avg volume is greater than 100,000. And only short a stock thats greater than 15 and avg. volume > 150,000



    --MIKE
     
    #29     Mar 31, 2003
  10. Last point... I have never met any successful traders that trade illiquid stocks that trade under $100,000 of value per a day.

    Just start a new system.. that uses liquid stocks instead.


    --MIKE
     
    #30     Mar 31, 2003