Easy money

I think this can be something valid...

But it's all about how you place your stops and exiting criteria for both Profit and Loss.

How about using ORB as part of the exit...

Maybe... a good swing setup... but dunno...

Just hypothetical stuff...
 
I was just posting the strategy out of fun.

I think anyone with a brain would see that hte drawback to such an approach is the volatility, i.e. you would have period of serious, SERIOUS drawdown.

For those technically incline, the autocorrelation of return would be positive.
 
Fish', another member... profitseer... used to post his ideas just like this one. I enjoyed them all as did many other members. They stimulate thought about trading and at the least prompt other members to think.

Nice work!
 
I did some test for 96 - Feb 03

Results are NOT encouraging. Simply because of the drawdown. Very extensive and excruciating.

Ex. The runup by JPM knocked off two of the best weeks in the sample size.
 
the problem with this strategy is that the risk is too great.

someone always tips their hand, the ones with the inside knowledge. especially to the downside. so what happens is that more often than one thinks, 5% or more down day is followed by a huge down gap.

current example? Cigna. Okay, I understand people will say that I'm wrong because it's not 5% down, but 4.57% down day, but you know what I'm talking about.

I think what happens with this strategy is that you'll have 4-5 small gainers. then a big, big loss that wipes out everything you made and then some.

Just my opinion, but I wouldn't try this.

If it works for some people, then more power to them.

Jake
 
You must log in or register to reply here.
Back
Top