My profitable trading strategy

Discussion in 'Strategy Development' started by flies, Feb 15, 2006.

  1. flies


    I have over the past months had quite good short-term results combining the following criteria:

    1. I find stocks at the bottom of rising trends or at the top of falling trends - where there is no divergence in MACD(12,26,9) development, signaling trend continuation.

    2. I wait for Hausse Index Fast Entry in rising trends or Fast Exit in falling trends (over 6 days) to signal buy or sell depending on the trend scenario.

    3. I enter when OBV (over 25 days) signals buy or sell depending on the trend scenario.

    This system obviously works both in rising and falling markets (going long and short), when trading the trend. I currently don't know other software products than that enables you to use Hausse Index, which is crucial for this strategy?

    I miss a thread that summarizes profitable systems, so what is your trading strategy?
  2. flies


    I can't be the only one earning money with discipline? :cool:
  3. dac8555


    ok ill bite. Just turned the corner to profitiablilty recently. My method is groosly simple. It is no big secret. I am sure plenty of people do this.

    1. Stocks about $5 trading at or near their 52 week high
    2. On rising volume
    3. On rising money flow
    4. On rising EPS

    THis part is very similar to CANSLIM or the methods in "how i made 2,000,000 in the stock market."

    I do ALMOST the opposite for shorts. I normally find overbought markets with
    1. Decreasing volume or increasing volume on the down side
    2. decreasing institutional interst
    3. negative economic factors
    4. lowering eps

    Money managemnt is tight.

    I program all entries and exits after market hours. I dont look at the account during the day and dont trade on news.

    1. Set stops at the high or low of the previous day if it is long or short
    2. Minimum avergae daily volume is 200k
    3. Add to the position every 5% gain

    there are several stocks which make this i then use a little persanl preference on which ones i will weed out. I have a 4 start stsem on my lists that determine which ones make the cut.

    If I have to make a choice between 2...i chose the one with less volatility which is safer.

    good luck.
  4. flies


    Earnings Per Share...

    A company's profit divided by the number of shares it has outstanding. If a company earns $2 million in one year and has 2 million shares of stock outstanding, its EPS would be $1 per share. If a company reduces the shares outstanding by buying back its own stock, for example, it can make earnings look better, even if the actual amount that it earned remains the same.