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Strategies & Market Trends : Befriend the Trend Trading -- Ignore unavailable to you. Want to Upgrade?


To: Dr. Stoxx who wrote (7134)5/17/2000 10:33:00 PM
From: Dr. Stoxx  Read Replies (1) | Respond to of 39683
 
When I first began experimenting with MA crossovers (again, the oldest TA trick in the book...which ought in itself to recommend it highly), I used the following screen to find stocks to trade:

-ADV of 500k minimum
-beta of 1.8 minimum
-52wk high >3X 52wk low

For one week I traded XIRC, SNDK and HTCH and with an account of about $7k made a quick $1500. I thought I had found the proverbial pot of gold. But soon each of these entered into quiet periods and began to lose money. I wanted some way of detecting when volatile issues consolidate, and thus when to stand aside from this sort of trading. This led to the following formula...

...in next post.

TC.