Strange price action in IBM, Coke, McDs

G

GTS

http://www.bloomberg.com/news/2012-...whipsaw-investors-in-ibm-coke-mcdonald-s.html


Investors in three of the biggest Dow Jones Industrial Average (INDU) stocks were whipsawed by price swings that repeated every hour yesterday, fueling speculation the moves were a consequence of computerized trading.

Shares of International Business Machines Corp. (IBM), McDonald’s Corp. (MCD) and Coca-Cola Co. (KO) swung between successive lows and highs in intervals that began near the top and bottom of each hour, data compiled by Bloomberg show.
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Yesterday was an odd day by my standards as well. The ES gave me 4 trade signals during the course of the day and normally I'm likely to get less than one. Definitely a lot of churn on the day.

I refuse to speculate on what it means because that's a sucker's game, but it definitely was out of the ordinary.
 
Quote from logic_man:

Yesterday was an odd day by my standards as well. The ES gave me 4 trade signals during the course of the day and normally I'm likely to get less than one. Definitely a lot of churn on the day.

I refuse to speculate on what it means because that's a sucker's game, but it definitely was out of the ordinary.
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Thats useful information.
Historically, from your backtests, did you ever before got 4 signals in one day in ES? What was the max. number of signals you got before in a day? These stats would help numerically saying how odd was yesterday.
 
Quote from gmst:

Thats useful information.
Historically, from your backtests, did you ever before got 4 signals in one day in ES? What was the max. number of signals you got before in a day? These stats would help numerically saying how odd was yesterday.
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I had 4 in the same direction only 1 other time. 4 short triggers in one day last September.

I've been using this exact same model since May of last year, so that's about 14 months of trading days and it happened twice now.
 
If anyone want the strat in EL here it is:


Code: 
Inputs: 
ThisMuch(100000000000);

Variables:
BuyTime(1000);

If T = BuyTime then begin
     buy ThisMuch shares next bar at market;
     BuyTime = BuyTime + 60;
end;
 
-----Investors Whipsawed by Hourly Price Swings in IBM, Coca-Cola---

how so? if you are investor-then you typically BUY for a long term,right?
who is 'whipsawed'? if you buy at the beginning of every hour-you shouldn't be complaining.. :)
 
Quote from Bob111:

-----Investors Whipsawed by Hourly Price Swings in IBM, Coca-Cola---

how so? if you are investor-then you typically BUY for a long term,right?
who is 'whipsawed'? if you buy at the beginning of every hour-you shouldn't be complaining.. :)
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Do you think guys like Buffett take positions in one trade or even in one hour? They can often push the price up, then let the sellers take profit and drive down the price, then go for another buying spree and so forth.
 
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