Deconstructing big moves in stocks

[fan27]

For those that follow qullamaggie and have followed the thread here:
https://www.elitetrader.com/et/threads/kris-kullamagi-breakout-setups.362667/

As part of his studies he created a database of charts of stocks that have made massive moves. In an effort to do something similar, I have done the following:

1. Ran a scan on stockcharts.com of stocks that have doubled in the past 12 months (did this going back a decade).

2. Took the list of symbols and added it to my backtest platform Tickblaze.

3. Created a strategy that would enter when the close closed above the 10 day SMA and sold when the close closed below the 10 day SMA. I duplicated this strategy for the 20 and 50 day SMAs.

4. Sorted the output by result % gain.

For example, in the attached CloseSma50BullishCrossover.csv file, we have the following entry:

Note the entry date of 10/20/2020. Next, pulled RIOT up on a chart. Here is the chart right before the breakout.

Here is the breakout (cup and handle):

Here is the move:

Attached are the files.

 

[Swiss_cheese]

Wow, that was a nice green candle. Do you still think RIOT is a good buy?

 

[easymon1]

Go Dude!

I have done the following:

 

[longandshort]

Try your test out of sample

 

[fan27]

Try your test out of sample

This is not a test. Just a way to study stocks that have made big moves. My ability to use this information with my live trading will be the "out of sample" results of the effort.

 

[longandshort]

3. Created a strategy that would enter when the close closed above the 10 day SMA and sold when the close closed below the 10 day SMA. I duplicated this strategy for the 20 and 50 day SMAs.

This is not a test? Looks like one to me lol. If not what’s the purpose of this then?

 

[maxinger]

cannot make head nor tail of it.
NO head, no tail.

 

[fan27]

This is not a test? Looks like one to me lol. If not what’s the purpose of this then?

The project is to study stocks "chart behavior" prior to a big move.

 

[Mercor]

Moving averages are a good tool when you know a stock will double in 12 months, It is almost the perfect tool
Try this system with a random list of stocks

 

[fan27]

Moving averages are a good tool when you know a stock will double in 12 months, It is almost the perfect tool
Try this system with a random list of stocks

Folks, this has nothing to do with creating a strategy based on moving averages. The moving averages were just a short cut way for identifying stocks that made a big move and when the move occured.