I currently have 128 unique patterns that have been trained on S&P data, ES futures data, NYSE-TRIN, and NYSE-TICK.
Each of these patterns were trained to find a "statistically valid" edge in the market. Most of these edges are relatively minor, such as increasing the chance the stock will be up 5 days from now more than is possible due to "random chance".
Based on the number of patterns the stock matches increases its score. The stocks with the highest scores end up on my watch list for the next trading day.
From this score, I am able to also gain insight into what type of "expectancy" I have over the next 5 to 20 days. For instance when I purchased NEM I had a +3.5% expectancy over 5 days and +8% over 20 days. These expectancies are generally inaccurate, but do help with the general direction.
The system will not remain stagnant, I am working on another 100 or so patterns that will eventually be merged into the primary scoring system increasing the overall accuracy.
While the stock picks may look like "bottom fishing", its actually just a statistical by-product of which stocks are more likely to be higher 5 days from now. A stock which has been beaten down recently has a better chance of a "bounce" over the next few trading days. This was confirmed the by the patterns that emerged. Combined with good risk management, you can make money.
Each of these patterns were trained to find a "statistically valid" edge in the market. Most of these edges are relatively minor, such as increasing the chance the stock will be up 5 days from now more than is possible due to "random chance".
Based on the number of patterns the stock matches increases its score. The stocks with the highest scores end up on my watch list for the next trading day.
From this score, I am able to also gain insight into what type of "expectancy" I have over the next 5 to 20 days. For instance when I purchased NEM I had a +3.5% expectancy over 5 days and +8% over 20 days. These expectancies are generally inaccurate, but do help with the general direction.
The system will not remain stagnant, I am working on another 100 or so patterns that will eventually be merged into the primary scoring system increasing the overall accuracy.
While the stock picks may look like "bottom fishing", its actually just a statistical by-product of which stocks are more likely to be higher 5 days from now. A stock which has been beaten down recently has a better chance of a "bounce" over the next few trading days. This was confirmed the by the patterns that emerged. Combined with good risk management, you can make money.