Trading System - Submitted for Review.

Discussion in 'Strategy Development' started by Mr. DNA, Nov 10, 2002.

  1. Mr. DNA

    Mr. DNA

    Trading System

    Range: Bottom Fishing 3.50 - 5.35
    Volume: .9 to 2 million shares per day
    Size: 2000 shares every time.
    Interval: Look for these signals on a 60 minute chart.
    Timeframe: Determined by the quality of the entry point. [from 1 to 7 days].

    Start with the price below the 10 pd MA.

    Preparation: Wait for steep rally.

    1. Buy: If the price goes straight up, through the 10 pd MA, Buy.

    2. Sell when it crosses back over the 10 pd MA. The angle will likely be to steep to be sustainable.

    OR,

    1a. Buy: when the 10pd MA crosses the 25pd MA.


    2. Sell position at a profit.

    First exit: on trendline break, Miss the top. It's OK. Have a soft drink. Look out the window.

    Second Exit: Sell upon pattern completion. [head and shoulders, double top, other]
    Remember that line: Don't try to out-think the market. It's OK to miss the top on the right shoulder also. Let it be a warning. Sell quick enough.

    Third Exit: If the price crosses the 25pd MA going down. Best practices dictate that the position should be sold at this point. No matter what kind of formation you think may be developing. [I've broken this rule several times and lost. Sometimes you see all the signals but still don't sell.] That is why I'm writing this.

    Last Exit: When the 10 pd MA crosses down over the 25 pd ma. This is the last chance to get out. Getting out here will require admitting wrongness about your interpretation but if you have a good entry point you should still be OK.

    thanks for your help.


    dna9
     
  2. PHISEL

    PHISEL

    Hi dna9,
    why do you choose shares with low price only?
    why do you use pd MA and not expon.MA which is more "reactive"?
    Have you backtested your system?