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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: MKT_entropy who wrote (13576)	8/15/2001 9:13:44 PM
From: hypostomus	Respond to of 18137

I fully appreciate what you're up against trying to work and trade. My goal is a system that lets me place stop market entry orders, check for execution, and place stop market exit orders, all with minimum distraction during working hours. The problem is not unrelated to how to make good 401K funds flips at day's end, my other obsession. The impossible dream, probably. I'd love to hear how you calculate risk, 'cause I'm still struggling with that one. To me, risk is the difference between the last price and my stop, so a well-balanced stop calculation is crucial, as well as keeping that stop trailing. I'm not sure what you mean by my stop approach not being rigid, because it's calculated by an algorithm. I calculate reward differently based on how I found the stock in the first place. If from a 4-day or 7-day linear regression scan, I use the daily slope times the hoped-for hold period, 4 days. If found from a gap-up scan, I use 3X the difference between today's close and that of yesterday. If from more complicated algorithms to find stair-steppers, I use 4X the difference between today's 4-day sma and yesterday's. If from a 52-week high or a 1.5% 1-day gainer or a pattern of increasing volume, 4X the average of the last three days' gains. Still a work in progress. In any event, the key is to find stocks performing better than the index they're in. I currently require that they be doing about 2X better than the market.