what about buying the high every day?

[kj5159]

Are you able to explain the outcome?

As mentioned in another post you either end up buying the new "high" every time there's an uptick after the first "high" which is obviously rediculous, so you then have to specify when is the "high" that you're going to go with as the "high", which is usually contained within an arbitrary time window. So you end up with "buy the new high after 10:00am" or something similar which doesn't get you very far, since you only really know what the high for the day is after it happens and when it's too late! It is very educational being confined to a very specific criteria though since you end up eyeballing charts for a long time in between signals, you start noticing other patterns.

 

[murray t turtle]

Define 'new high'. .......Are we talking tick charts?

Search 'Richard Dennis Turtle'

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OK for example, in an upTrending bullmarket, quarter hi,mo high, weekly hi,daily hi....... Of course if you do that with a bear market stock like GE , past 18 years, one could be bear bait-dead duck so to speak.

 

[murray t turtle]

It is called trend following .......

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Works well in a bull market ;why?? Higher quarters/years, higher months + higher weeks + higher days...... Try that in a mostly downTrending bear market stock like GE, past 18 years, could be a dead duck, so to speak

 

[treeman]

What you could do is something like a donchian channel. Buy when 4-week high is broken and sell when low is broken. I can’t vouch for its profitability, but I think that’s essentially what the turtles did.

 

[1a2b3cppp]

Purchase the high of the day after a pullback.

Look, price goes up, makes a high, then it pulls back, then it goes up past where it was before and you buy, and so on.

Now this means you buy once every time a high is made.

 

[treeman]

Look into Donchian Channels as I said. That's where you're digging.

 

[smallfil]

Past like the first 30 minutes? How about buying the high every time there's a new high? This method would only lose money when price makes a new high and then drops under it. The method would only lose money on days that look like this /\ true?

That is how the turtles traded, new 55 day highs. Nicolas Darvas bought stocks when it established new highs. Put his stop loss just below the low of the box. Hedge funds trend following do it too. Buy the new highs and put a 2 ATR stop loss below their entry. Longer term could be profitable but, the drawdowns if there is a deep pullback could be huge! That is why I got out of position trading. The drawdowns could be very big. I will take smaller drawdowns and smaller profits too. I am fine with that!

 

[wrbtrader]

Just backtest it. No need to speculate when it's pretty straightforward to find the answer to this hypothesis.

I think people just like talking about something that can be easily backtested to get their answers. Yet, the discussion wastes more time when something can be resolved in a weekends work if someone really is interested in those answers.

Simply, thread started on Wednesday and today is Saturday...he should have his answers by now.

wrbtrader

 

[Lukas V]

It seems to me that the basic idea, here, has the same underlying basis as "Turtle trading". If you read the interviews with former turtles in the Schwager books, you'll see their explanations of why it no longer works in today's markets.

 

[ironchef]

Of course if you do that with a bear market stock like GE , past 18 years, one could be bear bait-dead duck so to speak.

You are a dead duck if you buy and hold GE but not if you day trade GE or follow your (IBD O'Neil) 7-8% rule.