Quote from frenchfry:
Thanks Jack.
As usual I find discrepancies. Unfortunately I also know that I might have overlooked something or it can be because we use different "tools" in a different way.
From your Hot list there are several stocks where I would say that they shouldn't be there. I listed the reason in brackets:
SFUN ( 65day volume below 200000)
MPEL(Float too high)
AG (Float too high)
BCS (Float too high)
BKD (Float too high)
AUY (Float too high)
CHS (Float too high)
DHI (Float too high)
PNK (Float too high)
BIOF (Float too high)
What was your reason to put them in your "Hot" list even though they don't fulfill the basic requirements?
I put together a HOT list by putting your 0's on a list.
I just was trying to show some aspects of trading PVT.
This was an attempt to show how, on a given date, a potential trader could begin to use some information about some stocks that fit a scoring category in the Order Of Events of scoring.
Maybe a person might want to begin to trade stocks and he might want to begin by focussing on a selective list.
I tried to explain what the criteria were for selecting a Universe as a starter.
As it turns out that is not being done since a lot of the criteria are left out. Also I wanted to see if a Universe could be selected on Friday's so that the IAS's for the selected Universe could be completed.
If that were done over the week end, then trading on Monday could begin with a HOT list and an OWNED list.
I jumped ahead and posted a HOT list of stocks that were 0's and which could go through the FRV subsequently during this week.
Now the Universe has come to an ending since it is Friday and the Universe selection process starts all over again. Maybe this time if it is done the criteria will be used.
At least the thread did see some selective stocks doing some activity in an anticipated manner.
If a Universe is selected and if the IAS's are done, then a HOT list can be available with dates for doing trading.
If some entries are made from the HOT list, then an OWNED list will be created and there to use and to do exits appropriately.
If two lists start to be used, then it is possible to examine very closely during the RTH just how money is needed and just how money is made available. By understanding "needs" and "availablility", then "crossover trading" can be understood and better defined.
If crossove trading gets understood, then the concept of not losing money ever will come into view.
This could, in turn, lead to an understanding of what range of Sharpe Ratios are common for different sets of skills and approaches used by the range of existing traders.
The foundation of PVT is the Universe. The Universe has criteria.
So far this is a stumbling block in selecting Universes.
If a poor Universe is chosen then backtesting of PVT turns out to be like Trader666's backtesting which was not statistically significant. He tested on what he thought he read in "Tomorrow's Newspaper Today".
Most modern platforms are not sufficiently developed to be able to trade using high Sharpe Ratios. This leads people to believe in only some of the possible Sharpe Ratio ranges.
