Nah, the method will not work unless you use an inkjet printer. This is a very important ingredient of success. The idea is that while you print, it introduces an additional lag between the real time quote and the order time. And if the printer goes "out of paper", that's even better. The power of positive slippage! ..... and I thought I was the stonedinvestor!
Nice analogy, or would that be a metaphor? No difference. It makes sense! Makes real good sense! Thanks!
this is a nice method one filter might be to look at short interest. ceteris paribus, stocks with high short interest are going to have more buying pressure than the average stock, given a catalyst you could overweight the stocks in the list that have higher short interest, for instance no idea if it would work just an idea for filtering criteria
My point was a way for you to weed out the fluff jumpers and actually buy the ones more likely to continue moving the rest of the day. You should care why they are popping even if you are going to be out by the end of the day. You admitted you are not scalping in 5 seconds but will hold until end of day if profit target not met at some point. Therefore, doing a quick run through over why some are popping will help you possibly pick the better of the breed for that day alone. Just a suggestion since you say you still do not know how to pick the better of the group consistently.
Seriously, and just what is the logic for that? I agree with more filters and longer up runs, but why shorts? DK
If you got out at $3,000 on Friday you should have had a loss for the week no? Under what cicrumstances do you deviate from the trading rules?
It is better to be unbiased then biased in trading. In a nutshell, if you only see longs, you miss the short opportunities. When I am running my slant, i keep my bias neutral by charting the absolute value of the relative price change wrt the opening bell for all assets. Put another way, if you had a short leader board and a long leader board, you would want the top 5 movers, you don't care weather they were gainers or losers so long as you can have positions in them. Alot of that is dependent on inventory of your broker. If your broker often have inventory issues on names you want to short, then clearly you will need to filter according to your long list. The only real filter is liquidity as pointed out by TR. However, this is nitpicking. The top gainers have nothing to do with the bull trend of an INDEX. INDEXes are comprised of many stocks. In other words, in a bear trend you will find the same type of movers. We are dealing with the few outliers across the ENTIRE array of stocks. This is what I mean be being in the tail. It is like the #24 car winning the indy 500 by 5 laps. How in the world does he acquire a 5 lap lead from the majority of the pack (ie. INDEX)??? Maybe he averages 240mph while the pack averages 220mph. It doesn't matter, the point is that someone is gonna be tuned to perform and consequently lead... If you can short, then you get to take advantage of both sides of the coin. VERY VERY SIMPLE!
There is another recent thread on a method that does the oposite: http://www.elitetrader.com/vb/showthread.php?s=&threadid=83935