Trading Plan

I mentioned that my universe will be limited to the 11 S&P 500 Sector Spyders. Going to amend that. So….

Part 1
Universe will focus on Sector Spyders and equal weight sector ETFs, but instruments can be any ETF

PART 2
Random thoughts on What I’m looking for as a setup

50 day MA and 20 day in uptrend (Required)
20 day above the 50 day (Required)
Stock coming up out of consolidation period or
Stock in an uptrend and testing the 20 (50?) day MA
Stock successfully tests support or trend line and breaks above previous high.
 
KGTrader4 said:
I mentioned that my universe will be limited to the 11 S&P 500 Sector Spyders. Going to amend that. So….

Part 1
Universe will focus on Sector Spyders and equal weight sector ETFs, but instruments can be any ETF

PART 2
Random thoughts on What I’m looking for as a setup

50 day MA and 20 day in uptrend (Required)
20 day above the 50 day (Required)
Stock coming up out of consolidation period or
Stock in an uptrend and testing the 20 (50?) day MA
Stock successfully tests support or trend line and breaks above previous high.
More...
What caused you to change Part 1?
 
deaddog said:
How so? The less choices you have to make when you start out, the better.
Limiting you criteria also teaches patience.
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Good point. As I said my focus is going to be on the sectors. I want use the entire universe of ETFs but I will use the equal weights maybe Gold and some of the commodity ETFs I think it’s still a pretty narrow focus feel free to disagree
 
KGTrader4 said:
Good point. As I said my focus is going to be on the sectors. I want use the entire universe of ETFs but I will use the equal weights maybe Gold and some of the commodity ETFs I think it’s still a pretty narrow focus feel free to disagree
More...
To find less correlated ETFs for swing trading, what I do is
  1. Get the top 550 passive, unleveraged, non-inverse, at least three years old ETFS by volume according to etfdb.com.
  2. Sort them by expense ratio and liquidity (current price times average daily volume).
  3. Going through the sorted list in order, find the subset of these ETFs such that each ETF has a three-year, daily return correlation (QuantDare method) with any other ETF in the subset less than a threshold.
The end result is a set of liquid, not-so-highly-correlated ETFs. I attached the current set.
 

Attachments

KGTrader4 said:
Good point. As I said my focus is going to be on the sectors. I want use the entire universe of ETFs but I will use the equal weights maybe Gold and some of the commodity ETFs I think it’s still a pretty narrow focus feel free to disagree
More...
FOMO??
It's one of the toughest emotions to overcome.
I don't disagree with addding ETFs once your strategy has proven itself, but it seems like you don't have a strategy you trust, yet you are worried you might miss some opportunities.

Build your startegy so that it will work in most markets then expand your uninverse.
 
KGT, if I may suggest Finviz.com (free screener). Look for the strongest sectors to find stocks to trade. That would be where the smart monies are flowing to. Energy is the sector that is very strong now. Oil and Oil Exploration should be your focus. Look for those stocks trending up very strongly. That is what I do anyways. Find the strongest stocks in that sector then, ride that trend as long as it lasts.
 
smallfil said:
KGT, if I may suggest Finviz.com (free screener). Look for the strongest sectors to find stocks to trade. That would be where the smart monies are flowing to. Energy is the sector that is very strong now. Oil and Oil Exploration should be your focus. Look for those stocks trending up very strongly. That is what I do anyways. Find the strongest stocks in that sector then, ride that trend as long as it lasts.
More...
Yes SF, as I said in the other thread, I have finviz and have used the screener to screen for strongest sectors. It’s pretty good.
 
deaddog said:
FOMO??
It's one of the toughest emotions to overcome.
I don't disagree with addding ETFs once your strategy has proven itself, but it seems like you don't have a strategy you trust, yet you are worried you might miss some opportunities.

Build your startegy so that it will work in most markets then expand your uninverse.
More...
FOMO have many faces..
 
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