Organized Systems Sharing

Quote from EliteThink:


Your idea has validity but the structure may need to be evaluated. I've set up a few alliances and they take time and the signing of nda documents. They also can take a formal company for the participants to assign loyalty to.
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Elite, does "nda" mean non-disclosure agreement?
In any case it seems you are concerned with the exposure of what your alliances produce. I would be willing to risk this occurring early on because it would potentially aid in harnessing future participants. For a system to lose its effectiveness it seems an inordinately large number of participants would first need to adopt the system. Especially if the system were applicable to many different stocks, commoditities, etc. Traderkay's comments pertained to this, if all 16,000+ ET's used a single system, would it cause the system to fail? Under certain conditions I would guess yes, but I can think of far more where the answer would probably be no.

What you have formed in the way of alliances is enviable. I can understand why you would wish to protect not only what is produced at any given point in time, but have legal recourse against any member who might be acting as a spy, or using the group's work to his/her own personal advantage. Thankyou for the advice.
-rlb
 
Hi a ooiioo a has hit the nail on the head. I have been trying to come up with a way to break down the rather formidable barrier of paranoia that most traders seem to have. I am working right now on some ideas which I will be posting in this thread. Hopefully by being the first to act I can show my earnestness in making this project work, and alleviate some of the concerns involved with sharing one another's ideas.
Over and out,
rlb
 
If we want to break down the proprietary secrecy barrier, we need to do what they did with the stone soup: do it all right out in the open, in front of everyone's eyes. Openly construct the system for all to see. By doing that, people will be bound to come in with their own contribution; even if it's just to criticize. That criticism is itself a contribution, you see. They're contributing to the project without even realizing or intending to contribute!
 
Firstly, I am a beginner trader with too small an account to day trade. I am looking to make trades lasting days, and sometimes weeks. My three most profitable trades have been in AMZN (currently the only stock I follow) and have been made without the use of a mechanical system.

My basic assumption is that with a bear market that has lasted as long as this one has, it is only reasonable to bet on the long side. Certainly the market could go down further, but I feel using tight stops there is greater reward on the long side at this point in time. As a result, what follows is my attempt to create a universe of stocks which I will either trade as I have traded AMZN or upon which I will apply a more mechanical Buy/Sell system.

The filter process went as follows:
(1) Get the total # of stocks in the NYSE and Nasda markets
(2) Remove all stocks with a falling 200 day EMA
(3) Remove all stocks trading for less than $5 as of 4/4/03
(4) Remove all stocks with a daily volume of less than 100,000 shares (a 20 day MA was employed)
(5) Remove all counter-cyclical stocks - Searching for issues which had a falling 200 day EMA between 03/03/2003 and 04/03/2003
(6) Create a list of stocks with an RSI above 50 and below 70 (outperforming, but not overextended) relative to there respective markets.

Backtesting is a problem since the idea is initially based on current market conditions. Also, I have yet to determine a system of trading. I have, however, begun marking some basic points of resistance/support based on the methods of Trader Vic.

The attached file summarizes my work to this point.
 

Attachments

we probably have all tools necessary to test multivariate strategies.

hii o ...
we could backtest this.

rb...
our C++ platform is a quite flexible tool ...


peace
 
Man,
What does your C++ platform do?, where can I find it?

AmiBroker users,

What is difference b/w RSI() and RelStrength()? I have looked at the help files. It seems the difference is that the RSI() calculates against the default index over 'x' periods and that the RelStrength() calculates against a user-defined index for one day. Is this correct?
 
Quote from rlb21079:



Elite, does "nda" mean non-disclosure agreement?
-rlb
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That is correct. Again, I think your vision has merit and will come to pass if you stick to it.
 
Days or weeks can be a good way of trading and avoiding the daytrader rules.

You can daytrade with a small account if you want, with Single Stock Futures. There's about 100 stocks that have Single Stock Futures, and it's a pretty good basic list for anyone starting out, even if they don't want to trade the futures, just as a basic list of stocks to follow.

I tried trading only one stock when I started, because I figured all I had to do was watch that stock and decide if it was headed up or down at any time. It didn't work too well, it was very hard to guess which way it would head. With my list of six stocks, all in the same sector, it's a bit simpler. I don't have to guess whether they're headed up or down. They usually move together in a group, and all I have to do is choose which one moved the most, and I bet on it to reverse. Whatever it was that moved that stock more than the other 5 that day, generally won't continue to be an influence more than one or two days. So I look for that stock to get back in line with its peers.

It's also helpful to follow the index futures, because the market moves with them, or they move the market. At the top of each trading page I have the S&P 500 E-mini and the Nasdaq 100 E-mini, they're good guides about which way the tide is flowing each day. Also, you can trade them almost 24 hours a day, which can be a great thing.

Betting on the market to turn around just because it's been a bear market for a couple years seems a dangerous bet to me. Especially now with war adding the bitter taste of destruction to our daily world. There's going to be a lot of ups and downs for quite a while, and adjusting strategy to expect that might be a good approach right now.
 
Quote from hii a_ooiioo_a:

You can daytrade with a small account if you want, with Single Stock Futures. There's about 100 stocks that have Single Stock Futures, and it's a pretty good basic list for anyone starting out, even if they don't want to trade the futures, just as a basic list of stocks to follow.

It's also helpful to follow the index futures, because the market moves with them, or they move the market. At the top of each trading page I have the S&P 500 E-mini and the Nasdaq 100 E-mini, they're good guides about which way the tide is flowing each day. Also, you can trade them almost 24 hours a day, which can be a great thing.

Betting on the market to turn around just because it's been a bear market for a couple years seems a dangerous bet to me. Especially now with war adding the bitter taste of destruction to our daily world. There's going to be a lot of ups and downs for quite a while, and adjusting strategy to expect that might be a good approach right now.
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I've edited your quote to accomodate what I will be replying to.

1. SSF's I will trade eventually, but until I feel a little more comfortable trading equities I will abstain.

2. I will be following the index futures as well as the major indexes and try to sync my trades with them.

3. The market may bounce for a while, there is a good deal of evidence to support this. However, the bottom seems pretty set. The end of the war should bring in some general euphoria. And, my inquiries with local business owners have shown there to be a dramatic rise in activity. I don't suspect the most robust of bulls coming up, but am gearing my trading in that general direction. I can trade the chop but I would be getting into that game late. So, I will be sitting on my hands until the next bull.

I have done some more work on what I posted earlier in this thread. Rather than bog this thread down I started a journal: http://www.elitetrader.com/vb/showthread.php?threadid=16005. Apparently, I have selected a "clever" name, which I think you'll appreciate Hi a ooiioo a.
-rlb
 
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