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Strategies & Market Trends
Random Walks

An SI Board Since April 1999

Posts	SubjectMarks	Bans
6	1	0

Emcee: Win-Lose-Draw	Type: Unmoderated

Introduction Compact

Hi! I want to use this thread to explore the utility of randomness in selecting stocks. Why do it in a public place? To force a certain discipline on techniques and reporting of results. Please don't post specific stock-picks. Discussion is welcome and encouraged.

Method #1:

The first method to be explored is very simple; any time the Advance/Decline ratio of the NYSE is greater than 1.33 three companies from the DJIA will be randomly selected. This will take place at 1/2 hour after the NYSE opens. The selected stocks will be sold at 45 minutes before the market closes. The purchase will be of 100 shares at the ask, and the sale will be 100 shares at the bid.

Go to reply# or date (mm/dd/yy):

Reply	Message Preview	From	Recs	Posted
6	WLD: What were your findings with the S&P? Ted	Cage Rattler	-	4/21/1999
5	I personally haven't reviewed the past data, but others have. If there is a	Win-Lose-Draw	-	4/20/1999
4	WLD: Fair enough. Statistically speaking, the indices do not rely on a random	Cage Rattler	-	4/20/1999
3	Thanks for the questions. Shorting and covering on downturns is an excellent id	Win-Lose-Draw	-	4/20/1999
2	W-L-D: During an equivalent down-turn response, ie. 0.67, are you considering	Cage Rattler	-	4/20/1999
1	My thread, I get the first post! :-) For those who haven't heard, today was	Win-Lose-Draw	-	4/19/1999

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