Dollar-Volume

[Spectre2007]

http://www.trade-ideas.com/StockInfo/high_dollar_volume.html


Dollar-Volume list, in the past I use to screen for dollar-volume on big up days and down days to get a list of the stocks that market participants trade the most in.

The goal is to look for outperformers on the upside and downside. If the index moves up 1% the stock on average would double the index movement ie 2%. So if you were timing in the index, you would rotate into the stocks on the cyclical low on the index, in high volatility stocks, and rotate out on a cyclical high. And you would do this with a basket of 10 stocks.

 

[fra10trader]

Quote from Spectre2007:

http://www.trade-ideas.com/StockInfo/high_dollar_volume.html


Dollar-Volume list, in the past I use to screen for dollar-volume on big up days and down days to get a list of the stocks that market participants trade the most in.

The goal is to look for outperformers on the upside and downside. If the index moves up 1% the stock on average would double the index movement ie 2%. So if you were timing in the index, you would rotate into the stocks on the cyclical low on the index, in high volatility stocks, and rotate out on a cyclical high. And you would do this with a basket of 10 stocks.

Thanks for sharing this - i like the methodology. Are you looking at your entry points on an interday basis or are you getting your signals from end of day triggers?

 

[Spectre2007]

usually, the signals originate off the index selloff itself. A big down day, a calculated risk is taken to move into stocks on the close and buy them cheap at the end of the day. Usually its capitulation selling, and your catching knives. If you get a signal on the index, 1/3 of the move is already priced in on the open when the index swings around, on individual stocks.

if you want to play it much more conservatively, you wait for the signal on the index, and get in in the stock after they have already started moving up.

Its sortof like swing trading but your using volatile stocks to garner bigger returns then the index.