Need Advice, Developing Shorting for Automated Trading system

Discussion in 'Automated Trading' started by Arastormx, Jun 10, 2009.

  1. :D :D :D

    ROFL. I now have a stalker!!!

    Help! Help! I'm being stalked!!!
    #11     Jun 10, 2009
  2. Unit001


    you can paint the eyes of your fellow noobs here

    you can be their noob king

    those of us who trade for real, eat guys like you for breakfast, what is sad is that you are not making progress over the years. You need to smarten up and quick.
    #12     Jun 10, 2009
  3. travis


  4. Arastormx


    I have no specific goal amount per day.

    I'm just looking for a good set of indicators that I can program into openquant just like I have going long on stocks. Like I said I have had great success with the backtesting on my long strategy, however, the long strategy doesn't work in reverse. Which is why I'm asking for advice on good set of indicators that can accuratley indicate when a stock is head/starts heading downwards.
    #14     Jun 11, 2009
  5. Arastormx


    And as far as more information goes...... I'm day trading......when going long I use a combination of the ADX, MOM, and one I've developed on my own. I have master's in statistics so its something I picked up in grad school. I do use a TTM of 5% off the maximum value. Meaning if i made 100 and it drops 5% off that 100 it should sell it right there. Its a completley automated system. However, like i said, using the system in reverse is not working..... for those of you that said noob lol idiots.....
    #15     Jun 11, 2009
  6. auspiv


    why doesn't it work in reverse?
    #16     Jun 11, 2009
  7. Arastormx


    If I knew why i was returning 104% long but loosing my ass when i tried to do the same strategy shorting would I be on these forumns asking for good shorting strategies?
    #17     Jun 12, 2009
  8. Arastormx,
    Try backtesting your long method with short and ultrashort ETFs that have good volume (over 1 million shares per day). Keep it simple.
    #18     Jun 14, 2009
  9. There are three things you can do. You do have a long biased strategy, that's for sure.

    1. add some filtering to your current sorting to let it tend to neutal. Were I you I would turn to a quality component in your sorting.

    2. Once you are allowing quality stocks into your universe, then consider the advantages of pruning the universe to only retain high beta stocks. Also make it sensitive by giving the highest vetas priority on your capital.

    3. Finally. focus on timing of trading. Trading shorts is fun because they have a higher money velocity duirng their down cycle. You can time trades without looking at price. The best way, in my opinion is to front run the herd. If you can recognize how the market is before the herd leaves, you can easily see the first components of its sentiment shift from A to D and take the ride. For the humor of it, google trader666 to see how a person utterly fails to perceive this facet of trading.

    If you do pursue any of the about, it will improve your long trades too, since these three elements are neutral baised. It will not harm you present long bias at all.
    #19     Jun 14, 2009
  10. #20     Jun 17, 2009