I would like to contribute this for review for those so inclined. Any comments
or feedback would be welcomed.
I am fairly new at this, maybe 3 weeks, and I have been reading all forums
on SI from start to finish to see if I can gain knowledge from these threads.
Here is something that caught me off guard and was wondering am I on to something here?
My database is relatively small right now since I just started. I am using this
BBB scan for Q+ to get a list of stocks to watch and I merge them into WOW as a group called BBB.
// BBB.SCN
// Updated 09/16/97 @ // 03:30 AM
//
// Begin Scan
//
// Richard's BBB (Buy Buy Buy) Scan
AllGroup // All conditions must be met
Exchange Nyse, Nasdaq // NYSE or Nasdaq only
IssueType = Common // Just common shares
qrs(0) >= 80 // Quote's Plus Relative Strength is above 80% of the group
Close(0) <= 5 // Price under $5.00
Close(0) >= 2 // Price above $2.00
Close(0) > Min(-1,-5,cl) * 1.05 // Today's close at least 5% higher than lowest close in last 5 days
Close(0) > Max(-1,-260,cl) * 0.85 // Today's close not lower than 15% of the 52 week high
Vol(0) >= 300 // Today's volume above 30,000
Vol(0) >=AvgVol(0,-75) // Today's volume above 3 month average of volume
AvgVol(0,-130) > 300 // Average daily volume last 180 days > 30,000 (Possible 130 trading days?)
//
//
// End Scan
Now that I have these stocks in a group in WOW, total of 41 stocks in the group, I ran this system test (RACER SYSTEM) on this group and found that out of the 41 stocks, only 9 had a negative value and 32 stocks showing some form of profit. Preliminary review looks like a holding of 9 months, but I have not really reviewed totally as I only just ran it and thought I would write down what I did on paper. <g>
I created 3 indicators. These 3 indicators were just so I could separate how I did this, the RACERslope isn't really needed as SLOPE does this. I just felt comfortable writing a separate indicator so that if I choose to play with it later, I could. MACD and STOCHRSI were formulas posted here on SI and then modified when I was playing with the numbers.
RACERstochrsi
1: mov((rsi(10)-llv(rsi(10),10))/(hhv(rsi(10),10)-(llv(rsi(10),10))),5,e)*100
2: trend(20,20)
3: trend(80,80)
RACERmacd
1: mov(c,8,e) - mov(c,17,e)
2: mov((mov(c,8,e) - mov(c,17,e)),9,e)
3: trend(0,0)
4: trend(.15,.15)
RACERslope
1: slope(c,5)
2: trend(0,0)
Using these 3 indicators, I made a System Test called THE RACER SYSTEM.
Enter Long: fml("RACERstochrsi") < 20 and fml("RACERmacd") < 0 and fml("RACERslope") < 0
Exit Long: fml("RACERstochrsi") > 80 and fml("RACERmacd") > .15 and fml("RACERslope") > 0
I used no stops in this system and for options; I have INCLUDE ENDING PRICE IN TOTALS, NEXT DAY'S OPENING PRICE, COMMISION $12, and FIRST TRADE AMOUNT = 1000 Shares.
That is what I did. I need to now go back and investigate how those trades came about and were they really good trades for the time period for what I am after. This is really my first attempt at just trying to create something with existing indicators. I put the indicators on the screen and just kept going through all the stocks looking for what looked like it would start the upswing and looked for what would exit it. From this, I changed the numbers to what looked right and wrote down on paper what I did. Notice to that I posted what I am using for a SCAN. If this system does have merit for stocks rated BBB in a price range of $2-$5, it may not be good for BBB stocks with a price of say $20. So when I was looking at stock charts, the only ones I am looking at are from a group in WOW I made for just the $2-$5 stocks that were scanned to be BBB by Richard.
Is this how it is done? Does this system have some promise? I have no idea yet since I have not done any real investigation on it, whether or not it is good for short term, intermediate, or long term. From the 2 stocks I quickly looked at the full report, it looked like long term of 6-9 months.
Comments anyone?
Tim |
