[ EK Short Sale, Trading Systems, and other Important matters ]
Did you like that one? I hope others were able to profit from the analysis, either financially or intellectually. For all the short sales I've searched for, I have never seen one that was better poised to fall both technically and fundamentally (with a much greater weight on the technical side) than EK.
After I initiated the short position, I started working on developing a trading system that took advantage of the shorter term price fluctuations as an adjustment to the current market volatility. I have therefore switched from a longer term investment perspective to a shorter term trading perspective.
Anyways, the trading system when applied to EK initated a short position on 9/09/97, 11/11/97, and on 1/13/98...all dates that preceded meltdowns for the stock. I'm running into limitations on SuperCharts on the programming capability, but I think it's also because I am not yet proficient in being able to take advantage of the entire range of features. Maybe I'll be able to get past the shortcomings after I actually take the time to read the manual.
However, I would like to know if you or others on the thread are using or are in the stages of developing a trading system, and if so, if any would be interested in opening some dialogue about the subject. Perhaps I might spin-off a thread from The Rational Analyst to segment the dialogue away from the (almost) daily stock analysis performed here.
Some of the most successful traders, as outlined in Jack Schwager's Market Wizards have admitted to using trading systems to dictate their market decisions. I also understand that they are of a trend-following nature, so that might give a clue as to the direction we could perhaps head to when developing them.
What do others think? If there is enough time to be found within my already-crammed schedule, and if enough interest is generated, I'll try the spin-off thread to provide a more focused area of discussion on the subject.
Just a little warning though on the time constraints: I'm currently stockpiling a bunch of books that I am looking to read. At last count it was eight, but it could go to ten by the end of the month. I am beginning to think that I need to take a vacation from the postings to take some more time to read these new books and to further educate myself about the market. Despite the FA/TA and investment/trading experience and over 20 books I've read on the market, I still feel my knowledge about the market is still very much incomplete. I'm hoping that others can understand the greater amount of time I will spend away for the purpose of continuing my market education.
I will remain plugged into the market, but I am expecting a decline in the stream of postings on my part. But who knows, with the amount of interesting facts and techniques I am bound to uncover, it may have the reverse effect of increasing my posts-- I've found that teaching a subject is a great way to learn about it.
Good night.
Rainier |
