Random Walk Contest Week 1

Quote from FishSauce:

Please, give me some suggestion

:)
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One possibility might be to restrict possible stock picks to those that have a 50 day average volume of at least 250k. Just an idea.

g
 
I'll dive in and play. It's just for fun. Sounds kinda like the "monkey/dart thrower outperforms fund mangers" challenge back in the .com days, but here goes!

LONG: AVT, MNC, MVL
SHORT: NOI, BDX

Equal weighting of 20% each. I took about 5 mins to come up with these picks based on relative strength. I'll check back next weekend to see how lucky/unlucky I was. This strategy is one I use, but as others have posted, real life trading would not have me locked into a Monday average to Friday close swing trade.

Cheers! May the best monkey win.
 
Quote from FishSauce:

Can you beat the Market? Needless to say, this is one of the most perplexing problem in finance/trading/life.

I am proposing this quasi-contest for anyone willing to join.

Here are the guidelines/rules:
1. On Sunday Night (or before Monday's bell) select FIVE or less stocks from NYSE. This will be your portfolio.

2. The weight of the five or less stocks can range from 100% to -100%.

3. The price of the stock will be the average of the High and Low. This obviously will be determined by the end of Monday.

4. Commissions are not applicable in this case.

5. Returns are based solely on price (no dividend). Stocks are assumed to be liquidated by the end of the week. The price (sale) will be the CLOSING price of that security.


Objective:
Pick a portfolio that will outperform (ROR) a simulated one.

Simulated portfolio:
Five Stocks randomly chosen by me (FishSauce) (or to be correct, Excel randomizer). All the guidelines are the same for the simulated portfolio (except of course #1). The weight will be 20% each.

Goodluck
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Hey there Fish. No offence, but you do sound like someone just "enlightened" by Finance 101, coming to set the record straight. :)

Pick some stocks and hold them five days, you say? *wry smile* You'll probably get the "results" you're looking for, but the exercise -- given that it has little to zero in common with trading --would prove pretty much zilch with respect to "beating the market".
 
It's Thurs and my 5 stock portfolio is green! not bad. 4 of my 5 picks are in the money. lets see what friday closes at. fishsauce, do you calculate it on a % return basis or actual $ basis?

DNAJ65000
 
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