Hi All, This is a new journal that modifies my system explained in: http://www.elitetrader.com/vb/showthread.php?s=&threadid=15478&perpage=6&pagenumber=1 TrendFader pointed out a few things about the nature of the low volume stocks being picked, and made a couple suggestions. This journal will follow the same format, except for the following changes: 1. Candidate stocks must have 50,000 avg daily volume 2. Candidate stocks must have a price over $1 I'm also going to be changing to a shorter list...10 longs and 10 shorts. See the above link for the gory details, but for a quick recap: **** RECAP **** Each afternoon between 3:30 and 3:35 (EST), I will post a list in this format: Code: Rank LONG Last SHORT Last 1 VPHM 1.86 MICC 8.26 2 PRKR 5.30 CGO 1.07 3 AMSC 3.37 CGA 1.32 4 MCTR 1.66 GRA 1.86 5 CNH 7.28 GLFD 4.25 6 TPTH 3.92 NNDS 11.90 7 ONTC 2.11 TRID 4.15 8 ITXC 1.26 QUIK 1.19 9 TTEC 5.29 VVUS 4.85 10 CNET 2.38 ELP 2.75 The columns "LONG" and "SHORT" give the program's stock picks. The "Last" columns show the last price the stock traded at. They are ranked in order, so the long candidate the program thinks will do the best is VPHM. These are the stocks that will be paper-traded...the above 10 LONG stocks and 10 SHORT stocks comprise that day's "Paperport" (Paper Portfolio). So, at the end of day1, the return of the paperport will be figured using these prices, as compared to the end-of-day prices (using 4:20 EST Yahoo quotes). At the end of day2, the return of the paperport will be figured by using the closing prices for the positions on the new list (which is now the paperport's holdings), as well as those positions that were held on day1 which don't appear on day2's list (the positions that paperport 'closed'). Each successive day will follow this procedure. Thus, the paperport's exit "strategy" will be to exit any position which it holds that does not appear on the new day's list. At some point after market close each day, I'll then post that day's paperport return, and the overall return from the first day (today, which will start at 0%). The format of this report will be: Code: LONG SHORT ALL Today 4.63% -2.14% 1.25% Total 18.52% In this example, the average gain in price of today's LONGs was 4.63%, and the average gain in price of today's SHORTs was 2.14%. But your profit on a short position is the negative of its gain in price, which is why the table reports an average SHORT profit of -2.14%. Finally, the ALL is the average of the LONG and SHORT profits: 0.5 * (4.63% - 2.14%). zorak
Code: Rank LONG Last SHORT Last 1 VPHM 1.80 CGO 1.05 2 MCTR 1.62 MICC 8.02 3 TMAR 2.25 GSIC 2.18 4 MDRX 2.47 CGA 1.31 5 CNH 7.22 QUIK 1.24 6 ITXC 1.24 GLFD 4.21 7 ANLY 1.39 NNDS 12.00 8 GTI 2.64 XETA 2.25 9 CNET 2.34 VTIV 2.76 10 SIPX 3.21 ELP 2.79 Time: 4/2/03 3:30 PM zorak
Zorak.. By the way.. A lot of these small caps can not even be shorted.. they simply dont have the shares available to short... --mIKE
I was able to enter short orders for all the ones on the list on IB just now. I've looked at the majority of stocks under consideration, most of them can be shorted on IB... zorak
Code: Rank LONG Last SHORT Last 1 VPHM 1.72 GGNS 2.13 2 GTI 2.51 PGNX 5.40 3 BPUR 3.06 CTS 7.31 4 VNWK 1.17 TRID 4.35 5 LUME 1.22 BTGC 3.37 6 TUNE 2.03 IMMU 3.27 7 CNET 2.30 NUVO 1.08 8 ASF 6.11 CMRC 2.28 9 UFI 4.65 DIOD 12.35 10 DATC 1.35 GSIC 2.15 Time: 4/3/03 3:30 PM zorak
In general... be carefulll shorting very low priced stocks.. you will get destroyed in a squeeze... because the % go up real fast...
Code: Rank LONG Last SHORT Last 1 MDR 2.69 NUVO 1.23 2 NMSS 1.27 MEH 2.70 3 ARIA 1.45 CMRC 2.29 4 ENTU 2.29 PGNX 5.85 5 PLXT 2.32 INKP 2.14 6 CHRD 1.00 CANIE 2.56 7 FIBR 6.26 PDII 9.05 8 STAA 5.38 IMMU 3.41 9 UFI 4.48 GGNS 2.11 10 STNR 10.02 HAKI 1.70 Time: 4/4/03 3:30 PM zorak