Code: 4/1 -2.25% 1.73% -0.26% Total 3.03% -0.49% 1.27% I'm going to stop this journal, and begin a new one that takes some of TrendFader's suggestions into account. I'll continue this one if there is any interest, or I may pick it up again after awhile. zorak
I agree with Trendfader. Though smaller stocks are more inefficient, thus open more opportunity you simply cannot seriously short a 20 Cent stocks. Once in a while you will be blown out so horribly on a single trade, that you can forget the stable profits made up to then. It's like shorting naked options. Looking forward to your new thread. And I think the paperresults need not at all be that impressive. 1% per day is way too huge. by compoudng that would be 1177% p.a.. I assume the strategy will continuously suffer from more efficiency in bigger stocks, but if it makes 0.2% a day, that would still account for 67% p.a. peace
one other thing, i have in mind, but did not find time to work on, is playing the different probability shape for small and big caps. by that i mean that you will not see Coke quindruple, but maybe some small stock. But both cannot fall below zero. Thus I have a different distribution shape. If I only buy small caps, thus avoid the higher danger of a short squeeze, and short the big caps, maybe only dow names or sp100, than I could profit. Ever thought of that? Mixing up the lists? peace
I moved this to my new journal, here: http://www.elitetrader.com/vb/showthread.php?s=&postid=233021#post233021 zorak