This is how I made my money. (Detailed methods reveiled)
- Thread starter e121c
- Start date
I see it more like "hey, I found some statically proven edge that worked well post-credit crisis.. and now that it's losing its shine I wish to share it with the world for bragging rights."
(Just poking a little fun, the thread starter does say a few good things about being humble and whatnot, so it's not all bad.)
You did not understand his post correctly, and he did not understand yours.
He was short during RTH and long over night.
Your reading comprehension error is excusable, your rudeness is not.
edit: I just went back over the thread and I see that at least a few: promagma and FreakofNature, and maybe others, understood the OP.
It wasn't that hard to understand his strategy. It works whenever there is, on average, a greater positive price move overnight then during RTH.
Maybe it is luck! but I currently do something similar, another pattern i found on ES and its been returning money so far every month without a loss! The point of this thread is not to gloat over how lucky i got, but to make a statement that one does not necessary have to use conventional methods to make money in this market. If there is not a bullet proof method out there that is iron clad in making money, than everything at the end of the day its just speculation. IMHO if one does not have a 100% fool proof strategy on trading, than anything he does right can be called "luck".
This is how you will lose your pants(complete screenshot revealed)
http://imageshack.us/f/138/notjhanalysis.png/
http://imageshack.us/f/138/notjhanalysis.png/
Quote from ocean5:
This is how you will lose your pants(complete screenshot revealed)
http://imageshack.us/f/138/notjhanalysis.png/
Well, that's why I choose financial stocks or more "stable stocks if you will" You don't necessary loose money on a down trend my friend. Run the strategy on 2008 data, and you will get a ridiculous return. I think low volatility is more of a killer than anything else.
In 2006 i had back-tested a system that bought the Russell 2000 stock index on a down day and sold the next open. If i recall, it had a profit factor of near 2.0 for a long time. There was a thread here on ET devoted to the phenomenon. Since then, i have no data. Someone ran it on some of their data in about 2010 for me, and it appeared to have floundered when the overall market floundered, but held up better than the overall market. It appeared to do well anytime there was a hint of a bull.
So this would be a broad phenomenon, or at least it was. It would be interesting to discover what Citigroup and the Russell 2000 might have in common. Heavily day traded?
As for selling the open and buying the close, never heard of that one. The Russell 2000 responded to a couple of time-of-day windows to either buy or sell, hold for an hour or so, and get out. Don't have data anymore.
