Those packages are great but overkill for your simple strategy. Should be dozens of LOC, not hundreds.
buying the highs
- Thread starter TheBigShort
- Start date
It would be more logical to buy the lows and sell the highs (not the breakout but the real top).
Because then you would already have a big profit when others start to buy the breakout. And if the breakout is fake you can get out without a loss as you bought the bottom and not the breakout.
Because then you would already have a big profit when others start to buy the breakout. And if the breakout is fake you can get out without a loss as you bought the bottom and not the breakout.
I don't think you can determine that in real time - only after the fact. At least I never could.
LOL whats going on with this new photo here? I don't think green is your color
. Could you explain a bit more? 1. I could get symbols for russel 2000 stocks (easy)
2. I want to buy all time highs if volume is 2x average and sell if price drops below 2% of the high (easy)
3. Now what if the next day is an all time high with good volume? I dont want to buy more.
4. How do I create a trailing stop order?
5. If i want to test buying highs when short interest is high?
I don't expect you to give me an indepth answer but could you point me in the right direction? any articles that have done a similar study. Thanks true type
"Yeah, ya wanna get rich trading, it's easy, first you pick the tops and bottoms OK...."
One thing that I really took away from working with Pete Steidelmayer was the time element in analyzing markets. And it has really helped me out over the years.
If a market makes new highs but aggressive offers quickly come in to hit bids and drive the price valuation back down, quite obviously the market rejected that higher price valuation. The important term here is quickly. In fact, when I used to scalp markets years ago I would race those orders and hit bids. On a chart, you will see that phenomenon usually on a news or economic release and you'll see a 'flagpole' candle or bar.
Conversely, if a market makes new highs and the valuation tends to hold for the most part over a period of time - it means that there are some substantial bids working in the market and that market participants have accepted the new higher price valuation.
I'm just going to spitball here, but maybe the thing to do is to wait some period of time to see if the new higher valuation is accepted. If it is, there's new buyers coming into the market and at some point in time short covering will add some fuel to the fire.
Personally, I am just thrilled to see someone who isn't stricken with the disease of fading every major move they see. Kudos.
3. Set a variable to 0 or ±1 to indicate current "state"
4. Function cummax(x) is your friend, ie cummax - current price
5. Logical subsetting, which is fundamental in R, covered in the Venables book
So if we currently look at AAPL it is consolidating at new highs. Using your statement, the market is okay with aapl being here and therefor on the break we should take a buy?(I bot the 190 call Jun8 for .79). When SPX took that dump 2 days ago AAPL barely budged aswell, I think this also shows strength. I wish I could understand why this "momentum" factor works for mega caps. Because ALL information should be baked in and therefor momentum should not exist. Any idea on how better I can understand why momentum works? Thanks Bone
always insightful, thanks true type. I will read the document over the weekend. BTW how would you describe a consolidation to the computer? Vol won't necessary describe that. I am thinking maybe "when the slope of the 10 day MA is 0". Any thoughts?
Well, I do at least try and my entries are better than waiting for the break outs. Not exactly top bottom, but far better than break out entries.