luc1grunt
622 posts
msg #46141
- Ignore luc1grunt |
8/1/2006 1:26:56 PM
agreed Niko...my post was in response to older questions of TRO on the strategy. Today showed a good one.
Yesterday I will say I got lucky for $1 on the big (and short lived) upswing from 67.29 to 68.31. Used volume as the only indicator.
All candidates will fail to fade the gap on occasion....Luc
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luc1grunt
622 posts
msg #46142
- Ignore luc1grunt |
8/1/2006 1:28:45 PM
and.....still working my stops on gappers. Been stopped out right before the positive shift, and have allowed my mental stop to be lowered only to get myself creamed. Still adjusting fire on this.
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TheRumpledOne
6,529 posts
msg #46148
- Ignore TheRumpledOne
modified |
8/1/2006 11:24:31 PM
FADING THE GAP...
The stock price has to move TOWARD the previous close BEFORE you enter the trade!!
Just because the gap does NOT fill, doesn't mean you lose.
Remember, 1000 times $.10 = $100.00
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veloman
10 posts
msg #46269
- Ignore veloman |
8/9/2006 12:46:03 AM
I wish I could buy 1000 shares of a big board like aapl! 68 grand lol. More like 100 shares.
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TheRumpledOne
6,529 posts
msg #46273
- Ignore TheRumpledOne |
8/9/2006 7:19:19 AM
Have you ever heard of MARGIN?
On TradeStation, you get 4:1 margin.
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nikoschopen
2,824 posts
msg #46275
- Ignore nikoschopen |
8/9/2006 9:02:12 AM
Margin is, well, like a double-edge sword. It can be both a recipe for success and a recipe for disaster, depending on how fail-prone or fail-proof ure system is. For the most part, the longest route tends to be the safest route. The best method of avoiding losses is, I'm told, to stay out when in doubt.
BTW, have you heard of OPTIONS?
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TheRumpledOne
6,529 posts
msg #46277
- Ignore TheRumpledOne |
8/9/2006 9:30:00 AM
OPTIONS?
Of course...LOL!
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TheRumpledOne
6,529 posts
msg #46283
- Ignore TheRumpledOne
modified |
8/9/2006 12:54:41 PM
Buy at market close, sell at the open the next session.
Statistics in your favor.
MAY ALL YOUR FILLS BE COMPLETE.
P.S. THEN YOU CAN FADE THE GAP... LOL!!
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estetson
9 posts
msg #46372
- Ignore estetson |
8/14/2006 5:14:33 PM
TRO,
The last filter you posted is based on this strategy, you said, "Buy at market close, sell at the open the next session. Statistics in your favor."
Okay, I can see the logic in that, and it's a very simple system to use (easier than fading the gap), but I have two questions:
1. Would it be better to take trades where the stock had the most gap ups, such as 80+ out of 100, or instead where the average gap was the highest, the MA(absgap,100) column, right?
2. Is there really any evidence to show that if a stock had a lot of gap ups or large gap ups over the past 100 days, that it is likely to continue following such a pattern in the future? I wonder whether the opposite might actually be more likely, since statistical anomalies tend to even out over time.
Any thoughts?
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TheRumpledOne
6,529 posts
msg #46373
- Ignore TheRumpledOne |
8/14/2006 7:47:18 PM
1) You pick the top stocks out of both categories.
2) NO. The stocks are on the list because they exhibit these tendencies over a period of time.
HTH.
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