I'm sorry for any confusion created by my previous reply. Allow me to clarify. With the "Gap Open" Method, I look for stocks that don't fill. Their price keeps chugging along in the direction of the gap without so much as a pullback for the first thirty minutes of the trading day. Any stock that experiences a pullback, reversal or simply flat lines before 10:00 AM, I remove from consideration. By 10:00 AM, most of the gap open stocks have failed to meet the above criteria leaving few (1 or 2) if any trade possibilities. At 10:00 Am, you simply buy the stock with the best chart (nicest stair step look). If price falls after your purchase, you exit immediately. If price continues to rise, you hold until price pulls back. What follows is an extreme oversimplification, but should help to clarify the overall methods. With the ETF Trading Methods, one seeks to capture the daily move (up or down) of the market using the DIA, SPY or QQQQ (formerly QQQ). One buys at the open and sells just before the close. If the trend fails to continue in the direction of the open, you reverse position. Adding on extra shares during the afternoon session provides an opportunity to increase gains made during the morning or recoup losses experienced during a reversal. Often numerous reversals occur during the trading day. Reversing positions during the numerous market reversals requires increased speed to close one position and enter into an opposite one (sell your longs and then short). The increased need for speed requires automation to effectively reduce delay, human error, and slippage. I hope that helped. - Spydertrader
2005-02-16, Wednesday - Update Due to price for MFLX falling to our stop price, I sell all shares of MFLX. I received a slightly less than favorable fill at $22.40 resulting in a gross profit of .77 per share on 1000 shares - a 3% gain. - Spydertrader
Thanks for the thorough explanation, Spyder. I think you should take a look at index futures. I recommend the following indices in this order: YM (Emini Dow) MR (Russell 2000) NQ (Nasdaq 100) Check out CME for more info: http://www.cme.com Take care.
2005-02-16, Thursday - Lists I used RS and EPS Settings of 90 for the following lists Stocktables.com Sevens - Ones - Zeros HURC - NGPS - FLSH MT - HLIT - MFLX MEE - UTHR - USNA PMTI - TIBX - MTEX WITS - WCC - LSS VTIV - CCJ - ISRG ANGO - LCAV - TRGL VPI - EZPW - CMC BUCY - WWCA - SNDA NSS - ANTP - XTO Wealth-Lab Chartscript/Manual Hotlist ANTP NGPS ANGO TRGL MFLX HURC EZPW SNDA Wealth-Lab Data/Yahoo Data Watch List GOAM - DU Cycle - DU5 - DU10 - DU20 PACT - DU Cycle - DU5 ANTP - DU Cycle - DU5 - DU10 CUTR - DU Cycle - DU5 TASR - DU Cycle - DU5 NGPS - DU Cycle - DU5 KEYW - DU Cycle FRD - DU Cycle INTN - DU Cycle - DU5 ELOS - DU Cycle - DU5 - DU10 - DU20 BCSI - DU Cycle - DU5 - DU10 - DU20 EBKR - DU Cycle ESMC - DU Cycle - DU5 - DU10 - DU20 HRT - DU Cycle - DU5 - DU10 - DU20 SINA - DU Cycle - DU5 - DU10 HLIT - DU Cycle IDSA - DU Cycle - DU5 - DU10 EVCI - DU Cycle - DU5 ULBI - DU Cycle - DU5 - DU10 Wealth-Lab Developer Data & Equations/G33M4K Equations SRVZ Wealth Lab Equations - Dry Up (with G33M4K Score) NGPS - 5 Eyeball Gallas2 "Keep an Eye on These" Stocks UBET (Attached) Yahoo Data/G33M4K Equations Dry Up Stocks with G33M4K Master List Score of Zero GOAM PACT ANTP CUTR TASR ELOS ESMC HRT SINA Stocktables Sort/Yahoo Data/G33M4K Equations/ Test Culling Method with Score Hotlist ELOS 0 EXM 0 HANS 0 MFLX 1 KEYW 2 MIPS 2 SNDA 2 TRGL 2 EZPW 5 ISSC 5 PMTI 5 TOPT 5 MT 7 (GOAM, ANTP, NGPS, ANGO, HRT, IDSA & HLIT have float outside normal parameters) - MT & TRGL now have float within our parameters. The following Stocks have been ADDED to the Final Universe List as of 2005-02-07: HURC. <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=688257>
Thanks for the recommendations, and I value your advice on futures trading. I know nothing of the futures markets, and differ to your extensive knowledge on the subject. I have both futures and options education on my list of things to do. Hopefully, I can begin that journey sometime this summer. However, based on my minimal knowledge of futures trading, I would think one could adapt my ETF Methods to the futures markets. How could I find historical intraday charts for the YM or NQ - type in a date and view the day's chart from a particular date in the past? - Spydertrader
hello ... have you read "trading like a hedge fund" ? I picked up a copy of it after going to a Fido sponsored wealth - lab seminar at the recently concluded traders - expo good luck to you in 05 setharb
If you are going to use QCharts, you will type the symbol and the front month. For example for EMini Dow, the symbol is YM. The front month is March which has a symbol of 5H. So you just type YM05H. Your ETF method may work very well. The volume method which we discussed previously also works quite well. Contact me when you are ready to delve into it. Take care
I looked at it at the bookstore. It is an interesting book. Have you started testing some of the methods mentioned?
2005-02-16, Thursday - Update The system generated a signal this morning when actual volume for FRD exceeded the 50% pro-rata volume level. Since we do not see price improvement, we ignore the signal. As a result, we take no action with regards to FRD. For those thinking FRD might provide a viable "short opportunity," we look to our indicators for clarification. Although MACD (-.0198) continues to remain negative, The Stochastic Indicator (31.0629) fails to fall below the 20 level (our desired parameter for shorting). For those wishing to track FRD for educational purposes, price held at $12.00 at the time of signal generation. - Spydertrader
2005-02-16, Review of MFLX Trade Although we experienced a profitable trade with MFLX, we also witnessed price improvement after price reached our stop point. The temptation to think, "Gee, if we would have only held out a little longer, we could have sold with another $500.00 in profit" clearly exists when reviewing one's trades. However, every signal, decision, pattern and trade idea appears with improved clarity in hindsight compared to real time. The importance of disciplined adherence to one's trading rules fails to materialize in this example. It appears on the surface ignoring the rules provided increased profits. However, over the long term, following one's stop rules actually prevents the loss of profits. A profitable trader may experience a loss on any one trade, yet continues to follow the trading plan because over the long haul, the rules provide a positive expectancy. The same holds true for a stop loss. On any one trade, ignoring the rules might provide greater profits, but over the long haul, adherence to the stop loss rules protects more profits (by reducing losses) than the money "left on the table" from any one trade. - Spydertrader