Hi Spydertrader, Could you explain what you mean when you refer to a stock maintaining rank in your Final Universe? Does this refer to a stock cycling a minimum of five times in six months for a gain of at least 20% in each cycle? Thanks in advance for your help. Kind regards, chaos
Here are some new candidates for the final universe. These were determined to meet the basic fundamental criteria from moneycentral.msn.com and finance.yahoo.com information: BITS GIGM IIG QUIK TSCM
Hey there spydertrader I really liked your video (that's you, right?). It's a biiiiiiig file but worth watching. One thing that I hadn't pulled into my thinking was how to use the score. Up to now I've been just scanning the FU every day for dry-ups and taking trades on the normal entry criteria of volume, stoch, macd, etc. I never really saw how I'd use the score on a daily basis however. So the idea is that a stock has to be in dry-up, meet the entry criteria *and* have a score of 7, 1, or 0? Or is it really that stringent?
Yes. An equity must maintain a minimum of 5 cycles (of 20% or more price increase) over a period of 6 - 8 days in order to maintain a position in The Final Universe. Any stock which fails to Maintain Rank (stops cycling) finds itself removed from the Final universe at the End of the Month. When using the Hershey Chartscripts, check the upper left hand corner of the Main Window Pane. If you see the word, "None" after Rank: The stock no longer has a rank. Thanks for these additions. Although I have yet to review any charts for the above list of stocks, Qcharts lists the following: BITS: Price below $10.00 USD GIGM: Price below $10.00 USD IIG: Already in my Final Universe QUIK: Price below $10.00 USD TSCM: Already in my Final Universe If I were to consider adding any of the above stocks (not already in the Final Universe), I would look at GIGM over all others. QCharts shows 57% Insider Ownership for GIGM, whereas, BITS and QUIK have less than 5% of their shares owned by Managers and / or Company Directors. Jack made the video, and you hear his voice. I apologize for any lack of clarity resulting from my posts. I simply wanted to make these files available while we wait for the various Hershey Web Sites to arrive at completion. Another video (which should arrive via snail mail in about a week) contains additional information, but it runs about 40 minutes long. I have been less stringent with 'score' when it comes to choosing my trades. Jack has suggested in the past that scores shouldn't receive the highest priority when determining equities to trade. As a result, I have viewed score as "a nice thing to have in your favor," but not 'mandatory' to have in your favor. I hope that helps. - Spydertrader
"If I were to consider adding any of the above stocks (not already in the Final Universe), I would look at GIGM over all others. QCharts shows 57% Insider Ownership for GIGM, whereas, BITS and QUIK have less than 5% of their shares owned by Managers and / or Company Directors." Spyder, interesting comment, do you apply this criteria for each potential trade?
Thanks Spydertrader, I have another question related to my interest in trading this system on an EOD basis. It concerns me that I won't be around during the day to exit trades that appear to be going wrong--that is, exit them before they hit my pre-set stops. For your part, you've often noted in your journals that you've exited trades before they hit your stops. But you've also often lamented the fact that equities you've bailed on have recovered and gone on to make further highs. Have you been keeping score? On balance, have your early exits saved you money or cost you money? I look forward to your response. Good trading to you, chaos
Adding the additional criterion of "25% Insider Owned" to the culling process creates a much smaller universe of stocks from which we can look for signal generation. However, initial tests show improved performance with these Higher Quality Equities. I currently monitor the performance of both the Final universe and the much smaller "25% Insider Owned" Universe for testing purposes, but have not yet added the additional culling parameter for actual trading. - Spydertrader
Early exits usually cost more than they save. A possible solution to your dilemma might be MBT's TTO order types. Using MBT as your brokerage, you could then enter an order, triggering only upon price reaching a certain threshold. Once triggered, the order would then automatically place a stop. Contact MBTrading for additional details. - Spydertrader
Thanks Spy, seems like you spend a fair bit of time doing research and analysis - a great model for beginning level traders to emulate... Cheers.