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Low-Volume Swing System Journal
- Thread starter zorak
- Start date
I agree with Trendfader. Though smaller stocks are more inefficient, thus open more opportunity you simply cannot seriously short a 20 Cent stocks. Once in a while you will be blown out so horribly on a single trade, that you can forget the stable profits made up to then. It's like shorting naked options.
Looking forward to your new thread. And I think the paperresults need not at all be that impressive. 1% per day is way too huge. by compoudng that would be 1177% p.a.. I assume the strategy will continuously suffer from more efficiency in bigger stocks, but if it makes 0.2% a day, that would still account for 67% p.a.
peace
Looking forward to your new thread. And I think the paperresults need not at all be that impressive. 1% per day is way too huge. by compoudng that would be 1177% p.a.. I assume the strategy will continuously suffer from more efficiency in bigger stocks, but if it makes 0.2% a day, that would still account for 67% p.a.
peace
one other thing, i have in mind, but did not find time to work on, is playing the different probability shape for small and big caps. by that i mean that you will not see Coke quindruple, but maybe some small stock. But both cannot fall below zero. Thus I have a different distribution shape. If I only buy small caps, thus avoid the higher danger of a short squeeze, and short the big caps, maybe only dow names or sp100, than I could profit.
Ever thought of that? Mixing up the lists?
peace
Ever thought of that? Mixing up the lists?
peace
Quote from man:
I agree with Trendfader. Though smaller stocks are more inefficient, thus open more opportunity you simply cannot seriously short a 20 Cent stocks. Once in a while you will be blown out so horribly on a single trade, that you can forget the stable profits made up to then. It's like shorting naked options.
Looking forward to your new thread. And I think the paperresults need not at all be that impressive. 1% per day is way too huge. by compoudng that would be 1177% p.a.. I assume the strategy will continuously suffer from more efficiency in bigger stocks, but if it makes 0.2% a day, that would still account for 67% p.a.
peace
I moved this to my new journal, here:
http://www.elitetrader.com/vb/showthread.php?s=&postid=233021#post233021
zorak