| StockFetcher Forums · Filter Exchange · FADING THE GAP STATISTICS FILTER | << 1 ... 1 2 3 4 5 ... 40 >>Post Follow-up |
| TheRumpledOne 6,529 posts msg #45563 - Ignore TheRumpledOne modified |
7/8/2006 2:09:55 PM "But the question remains as to HOW ure s'pose to have known THAT was the high of the day, namely $116.94. Now that it's clearly printed on the chart, It's easier said than done. But can you bet ure shirt as it unfolds in realtime?" It's the MARKET - NO ONE KNOWS ANYTHING! You have to TRADE. So, when I trade, I trade when the statistics favor a profitable outcome. I don't necessarily wait for the gap to fill to take my profit. I take it WHEN I CAN!! 1000 * $.10 = $100! Do that with 10 stocks that fill the gap 80% of the time and you make $1000 a day. Simple. |
| TheRumpledOne 6,529 posts msg #45569 - Ignore TheRumpledOne modified |
7/8/2006 3:13:49 PM If column Xgapup is 1 then OpLo is the potential profit had you shorted the gap up at the open price. If column Xgapdn is 1 then HiOp is the potential profit had you bought the gap down at the open price. See many losers? NO! Because, statistically, you will profit 4 out of 5 times or better. Can you lose? Of course! If you are too slow or too greedy that will cause you to lose. The market may just turn against you and cause you to lose. ANYTHING CAN HAPPEN! But statiscally, you will come out ahead. Before you ask when would I stop loss, let me just say you must figure that out for yourself. Use money management to stop you out. The way I would trade this is to pick the top 5 performers, trade 1000 shares each and exit EVERY TRADE when my daily goal was reached. So if I set a daily goal of $500, I don't care if they are green or red, I would exit every trade once that goal was reached. That is called DISCIPLINE. And you don't need to watch indicators to determine your exit when you trade that way! |
| TheRumpledOne 6,529 posts msg #45567 - Ignore TheRumpledOne modified |
7/8/2006 3:15:17 PM This filter shows the performance of the stocks selected to fill the gap for last session's trades when you run it after the session is over. So if you are running it this weekend, you will see how Friday's stocks performed. Legend: and add column Xgapped - the size of the gap and add column Xgapup - 1 if gapped up and add column Xgapdn - 1 if gapped down and add column cl1lo - previous close - today's low and add column hicl1 - today's high - previous close and add column gapupfilled - 1 if gap up filled and add column gapdnfilled - 1 if gap down filled As you can see, the odds are way in your favor when you FADE THE GAP! MAY ALL YOUR GAPS BE FILLED. |
| TheRumpledOne 6,529 posts msg #45571 - Ignore TheRumpledOne |
7/8/2006 3:17:53 PM Look at the $40 and above vs. the $1 and above. See the nice profits in the $40 and above? This strategy usually pays off better with the $40 and above. |
| nikoschopen 2,824 posts msg #45577 - Ignore nikoschopen |
7/8/2006 5:45:50 PM TRO sez: It's the MARKET - NO ONE KNOWS ANYTHING! You have to TRADE. So, when I trade, I trade when the statistics favor a profitable outcome. I don't necessarily wait for the gap to fill to take my profit. I take it WHEN I CAN!! 1000 * $.10 = $100! Do that with 10 stocks that fill the gap 80% of the time and you make $1000 a day. Simple. ____________________________ Simple?? TRO, I don't know how many years you've been playing the markets, but it ain't simple by any stretch of imagination. Ask any professional who grinds his profit day in and day out (I know certain individuals who make over $10,000 a day consistently) whether it's simple. |
| TheRumpledOne 6,529 posts msg #45579 - Ignore TheRumpledOne |
7/8/2006 6:03:03 PM I said SIMPLE. I did not say EASY! It is simple to lift weights. It is easy to lift 5 lbs. It is harder to lift 50 lbs. Very few can lift 500 lbs. But, the actual lifting is simple. Trading is simple. You buy/short and then sell/cover. That is simple. The "trick" is to make money. That is simple too, yet most people want complicated systems. Fading the gap is simple. Nothing ever changes. Go long on gap downs and go short on gap ups. That is simple. The only question is whether or not the trader sticks to the plan. |
| nikoschopen 2,824 posts msg #45581 - Ignore nikoschopen |
7/8/2006 7:50:24 PM TRO, My bone of contention wasn't about fading the gap, but the way in which you misinform ure newbie brethren by making it ipso facto the art of simplicity -- a non sequitur in my otherwise not so humble opinion. Be that as it may, you then seem to indemnify ureself by such clauses as "it ain't what you trade, it's how you trade" or "you have to TRADE". But, if you care to remember, I've been through this route before. And it amazes me you still practice the same rite of bad faith, FWIW. |
| TheRumpledOne 6,529 posts msg #45582 - Ignore TheRumpledOne |
7/8/2006 8:50:34 PM "My bone of contention wasn't about fading the gap, but the way in which you misinform ure newbie brethren by making it ipso facto the art of simplicity -- a non sequitur in my otherwise not so humble opinion. Be that as it may, you then seem to indemnify ureself by such clauses as "it ain't what you trade, it's how you trade" or "you have to TRADE". But, if you care to remember, I've been through this route before. And it amazes me you still practice the same rite of bad faith, FWIW." Niko, you have a right to your opinion. I have a right to mine. But I did NOT misinform anyone! I posted a filter that proves itself via statistics. That is FACT, NOT OPINION. SIMPLE means it is NOT complicated. The rules are clear. Even a NEWBIE can follow the rules. ANYTHING CAN HAPPEN! You know that. If there was a "lock" there would not be a market. And it is NOT what you trade, it is HOW you trade it. You can trade a P.O.S. stock and make money. You can trade a great stock and lose money. It is all in HOW YOU TRADE IT! But there is no bad faith on my part! |
| alf44 2,025 posts msg #45609 - Ignore alf44 |
7/9/2006 10:37:26 PM "...Trading stocks is like breaking and entering, the more you put in to bag, the longer it takes. The longer you remain inside, the higher the chance you get caught..." -------------------------------------- I DO like this analogy !!! Well said, RumpledOne !!! Regards, alf44 |
| tmaugham 115 posts msg #45610 - Ignore tmaugham |
7/9/2006 10:39:24 PM TRO, Firstly thanks for the filters and words of advice. But please explain to this thick person how this is supposed to work. In one of your posts you say "Go long on gap downs and go short on gap ups." How exactly does this work? Are there other posts I should be looking at that give the basic information on using this filter? Thanks... Tom |
| StockFetcher Forums · Filter Exchange · FADING THE GAP STATISTICS FILTER | << 1 ... 1 2 3 4 5 ... 40 >>Post Follow-up |
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