My simple, yet profitable trading strategy

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i had a system that was similar to this but i traded it a little differently

i would buy 100 shares of say 1-20 stocks dependin on my end of day scan and pre mkt filter (gaps, chart patterns, etc)

i also would start buying at 10 05 (incase of numbers at 10 which would give me top tick)
i would never let it buy oil or gold stocks as too dependent on oil//gas numbers (i konw people think im nuts...but GOld does move with oil with tendancy to "Reverse"

then it was a program that automatically added to winners and eliminated 100 lots that were losers at a certain %age stop

i also did it for shorts ...but didnt work as well cause of uptick rule...really screws it up to add to winners cause u get filled on the bottom

anyways..it works really well During Earnings, but TERRRRRRIBLE in choppy markets

after all said and done the sytem was profitable..but for the $ used and risk reward....i decided to stop doing it as there were better risk reward scenerios i figured out to use my money for

BUT i will say it DEF made money

i also had a portfolio stop..where if the portfolio went down a certain $ amount it would bang out of everything

for winners if a stock continued, to buy a position...if it got to a certain point ...that individual stock would book % profits and the portfolio in general had a PORTFOLIO P n L where it would book 50% and move the portfolio PnL

so if a stock that normally moves 1pt a day..and im up 1pt in it that day...im takin some chips off the tabl and adjusting a stop for that stock

like i said..it was complicated and a lot fo times over riding the system would have made me A LOT MORE money


ALSO this was PRE HYBRID ..dont konw now with all the jiggles if i would get faked into a lot of bad entries and stops...im hearing a lot of false stops with some dudes with systems


good system though and works especially good on stocks with news!!..just daytrade those with the simliar system..buy a 100 and if start working LOAD UP...if not....oh well..lose 1 pt on 100 lot
better risk reward to have 1000 lot of a winner and 100 lot of a loser

trading 101 ..but hardest thing to do...add to winners, cut losers

d
 
Hi all -

Does sound like a decent system. Where do you get a broker that stops you out on a portfolio gain/loss, as you state "up $3000 out; down $1800 out"? I'm using Interactive Brokers and they claim that you must put your stops and limits on individual stocks rather than on the entire portfolio.

Thanks for info.
 
Quote from jsteinfe1:

Hi all -

Does sound like a decent system. Where do you get a broker that stops you out on a portfolio gain/loss, as you state "up $3000 out; down $1800 out"? I'm using Interactive Brokers and they claim that you must put your stops and limits on individual stocks rather than on the entire portfolio.

Thanks for info.
More...

you can use their excel DDE example for such purpose to place some sort of alarm. dumping all positions at once automatically also can be done, but it's a bit more complicated.
 
Thanks for your response Bob111. I wish you would elaborate a bit on how orders can be based on portfolio activity. I do not see the ins or outs in the excel DDE example of Interactive Brokers.
 
I tested this setup today, just today. My broker IB has a list of Top Gainers/Loosers real time plus you can narrow down your query to min & max price, current volume etc, I think it's a cool feature.

At 10 AM EST saw and entered these paper trades:

Unlike Traderich I modified few things just to see how it'll react. Given this trading is dependent on overall direction of the market I "diversified" with both long and short. I think Dustin does or mentioned the same. Here is a run down and status at 4 PM Closing price:

LONG 300 shares each:
CNQR...$16.93 = +287
UEPS...$30.55 = -140
RNOW...$16.03 = +34
LAVA...$9.85 = +43
ONNN...$9.41 = +91
TLGD...$11.74 = -119

DAY TOTAL = +196

Note, porfolio total = $33,449



I ran the same scan for top % loosers and came with this list to paper trade:

SHORT 300 shares each:
SRX...$21.98 = +241
ULBI...$10.33 = -47
NURO..12.33 = +76
SMI..7.46 = -29
BORL...$5.13 = $7
GVHR..20.90 = -44
MOBI...6.13=-8

DAY TOTAL = +196

PORTFOLIO TOTAL = $392

I think it might it might be better if you set stops per stock instead of porfolio stop since some gains and losses outweigh many times higher...compared to others...so you could cut those looses sooner. Down side is it might be tidious to deal/stop each individual entry as apposed one shot sell out.

I think it might be a viable trading if you do following:
1) Trade expensive stocks...$15 or higher
2) Place individual stops instead of portfolio
3) Incorporate some TA for entry and exits. Generally I use 2 time frames for both entry and exits. For example if I day trade I have 2-3 charts with 1 minute, 5 minute and 25 minute interval. If all in gear I place enter/exit. If 1-min is down or bearish but 5 and 25 minute charts are bullish or rising I enter the trade. Have not tested how it'll work out with this "10:00 AM Strategy"

That's all I can think of right now...good job overall Traderich and Dustin for sharing this, I think it's a neat method :D
 
If anyone wants to follow along, here were my closed trades today. GILD should have been a winner, I screwed that up. Otherwise it was a good day. Keep in mind the Price columns are average prices.

MBI was unrelated to this strategy.
 

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