Low-Volume Swing System Journal

[zorak]

Rank	LONG	Last	SHORT	Last

1	VWPT	0.44	SGNT	0.13
2	PCSA	0.25	ASPX	0.17
3	DDIC	0.14	PME	0.66
4	SOI	1.71	TAXI	3.99
5	PLXT	2.58	MTSN	2.01
6	RDRT	0.73	MDEA	0.96
7	HAKI	1.54	ARTX	0.54
8	ATCO	3.39	CTEC	8.80
9	GEMS	0.86	TFSM	0.29
10	NTCT	3.02	EGAN	0.22
11	XYBR	0.36	MICC	6.61
12	SCMM	2.68	CLST	7.34
13	RCNC	0.73	STAT	4.95
14	ADAT	1.97	APS	0.35
15	NTPA	1.36	SIPX	3.60
16	VRSO	0.49	COB	3.98
17	SOFO	0.37	MAXY	7.68
18	TMAR	2.50	POSO	0.14
19	OPNT	5.75	NOVT	8.93
20	IVIL	0.58	MVIS	4.79

		Time:	3/28/03 3:31 PM

zorak

 

[zorak]

DAY	LONG	SHORT	ALL
3/28	-1.47%	-2.25%	-1.86%
Total	2.53%	-0.01%	1.26%

zorak

 

[zorak]

Quote from Trend Fader:

Yes I am convinved fills are going to be horrible in the long run.... especially when the market is volatile...

I bet you if ZOrak was actually trading his system with real $.. his results would be much different than his paper trading.. therefore... his paper trading is not a true representation of how much $ he is making/losing...

Why would my actual fills be automatically worse in a
volatile market?

I'm sure my results would be different than paper trading...but
what about someone who knew what they were doing, or knew
how to trade low-volume stocks?

Thanks for the comments, btw.

zorak

 

[Trend Fader]

OK... good luck...

 

[zorak]

Rank	LONG	Last	SHORT	Last

1	RCOT	0.22	DDIC	0.14
2	ADAT	1.75	TFSM	0.31
3	SOI	1.60	ROBV	0.19
4	HAKI	1.43	POSO	0.17
5	RDRT	0.66	MDEA	1.24
6	XING	2.08	COB	4.03
7	SGNT	0.11	EGAN	0.23
8	MTEX	2.55	MCTR	1.75
9	NPRO	0.65	MTZ	2.16
10	PLXT	2.40	GLFD	3.80
11	TRPH	0.21	PRM	2.35
12	MPH	3.66	SIPX	3.67
13	RZYM	0.36	STAT	5.10
14	XXIA	4.80	GERN	5.18
15	WRLS	5.34	ARDM	1.24
16	CKR	4.30	HEPH	5.89
17	EDSN	0.92	UAXS	0.19
18	SCMM	2.62	MTSN	1.95
19	TMTA	1.00	KANA	3.99
20	ASPX	0.16	VLNC	2.15

		Time:	3/31/03 3:30 PM

zorak

 

[Trend Fader]

Quote from zorak:



Why would my actual fills be automatically worse in a
volatile market?

I'm sure my results would be different than paper trading...but
what about someone who knew what they were doing, or knew
how to trade low-volume stocks?

Thanks for the comments, btw.

zorak

Your fills will be horrible in a fast market for an illiquid stock... have you ever traded before??? The spreads get very wide at times .. and the bids and ask jump around all over the place.. it can move up %5 and down %5 in a few seconds.... this is the reality...

Yes the results will be very different.. thats why its pointless to continue paper trading it.



--MIKE

 

[zorak]

DAY	LONG	SHORT	ALL
3/31	2.75%	-2.22%	0.27%
Total	5.28%	-2.23%	1.53%

zorak

 

[zorak]

Quote from Trend Fader:



Your fills will be horrible in a fast market for an illiquid stock... have you ever traded before???

Heh, I thought I had been pretty clear that a) I haven't traded
these lowvolume stocks, and b) I suck at trading in general.
Thats my stated reason for doing this...to get help from
someone who doesn't suck at it.

The spreads get very wide at times .. and the bids and ask jump around all over the place.. it can move up %5 and down %5 in a few seconds.... this is the reality...

Yes the results will be very different.. thats why its pointless to continue paper trading it.
--MIKE

Is there any level of return for paperport that would
interest you enough to attempt to find a way to
trade it?

What is the minimum average volume a stock must have
before you would think it possible to trade it?

zorak

 

[Trend Fader]

OK.. let me just give an example...

Look at RCOT... the stock is trading around 30 cents and trades around 20,0000 shares a day. Do the math.. that means it trades around $6,000 worth a day. LOL

You can not trade these kinds of stocks nor can you backtest them or paper trade them.. period.

I am an experienced trader and would urge you to avoid these low volume stocks and setup a filter....

Here is the min. you should be looking at..

50,000 per a day in avg volume

Stock price > $1.

-- This means that the stock will be trading a min. of $50,000 per a day.

Personally, I would only go long a stock that is greater than $1 and avg volume is greater than 100,000. And only short a stock thats greater than 15 and avg. volume > 150,000



--MIKE

 

[Trend Fader]

Last point... I have never met any successful traders that trade illiquid stocks that trade under $100,000 of value per a day.

Just start a new system.. that uses liquid stocks instead.


--MIKE