KSK8
561 posts
msg #145715
- Ignore KSK8 |
12/26/2018 11:33:00 AM
If you were truly intoxicated and were able to create such a filter I applaud the endeavor but I don't think this filter adds any generic value to mine unless I am not seeing something in it. It does look appealing though.
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shillllihs
6,101 posts
msg #145716
- Ignore shillllihs |
12/26/2018 3:09:24 PM
Yeah was drunk.
Not an improvement on your filter but possibly a better overall filter.
Price above 5 and more easily shortable stocks. But whatever, don’t use it.
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KSK8
561 posts
msg #145717
- Ignore KSK8 |
12/26/2018 3:46:15 PM
Its NOT difficult to short stocks under a $1 using Centerpoint. I don't know what old fashion broker you use shillllihs but go google Centerpoint Securities.
But high-5 for the effort!
Maybe one day you'll craft an improved version.
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Mactheriverrat
3,173 posts
msg #145721
- Ignore Mactheriverrat
modified |
12/26/2018 9:35:17 PM
deleted - you wanted a shorting filter
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KSK8
561 posts
msg #145722
- Ignore KSK8 |
12/26/2018 10:30:30 PM
Mac,
I encourage you to improve upon it rather than compete, perhaps tinkering with the criteria may yield more plays or more of a return, the possibilities are endless!
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Mactheriverrat
3,173 posts
msg #145723
- Ignore Mactheriverrat
modified |
12/26/2018 11:00:22 PM
Roger that! The possibilities are endless!
;-)
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johnpaulca
12,036 posts
msg #145724
- Ignore johnpaulca |
12/27/2018 12:13:01 AM
Why would anyone try to improve on a filter that yields a 95% win rate? If this correct then it would be the best filter ever posted on SF and kudos KSK8.
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KSK8
561 posts
msg #145728
- Ignore KSK8
modified |
12/27/2018 11:15:09 AM
I am going to go ahead and explain this filter which I should have done earlier;
WHY THIS FILTER HAS SUCH A HIGH WIN RATE:
The reason this has such a huge accuracy is because of a number of factors that transpire which gives more weight to the next day being bearish.
Essentially the prospect of the filter is based upon extreme price exhaustion and bagholders dumping their shares. This creates a manifestation of panic.
Explanation of the criteria:
-Stocks under $5 are typically unsuccessful companies so whenever there is a large move to the upside, a lot of bagholders will be taking their profits and getting out creating selling pressure.
-The RSI(2) crossing above 98 component signifies price exhaustion from a technical standpoint. This being a huge bearish indication of a 1 bar pullback or a large reversal. One of those factors will happen. So it is better to assume its a 1 bar pullback and take the short trade as the rules go.
-The close is 10% below the high criteria in this tells us that the stock failed to break to higher highs intraday giving a strong signal the move is out of power and weakness is now in play.
-When there is over 50,000,000 worth of liquidity for a stock that prior had liquidity minuscule to that number, this gives the ability for fakeouts to transpire since there are too many new traders and investors trading the stock for this particular day.
--------------------------------------
With all these in play, you can bet with little doubt the next trading secession will indeed be bearish! That next day is what we want to play, NOT the next several days. I don't care what happens after because it could keep running after the expected bearish move, who knows! But what we do know is there is a high probability the stock will undergo a bearish day after its big green day.
In terms of profitability, until presented another one, this stands as THE most profitable filter on stockfetcher.
However the caveat is you need the correct broker because tdameritrade, robinhood,etrade, and traditional brokers WILL NOT have the shares you need to borrow in order to short. Centerpoint Securities and Speedtrader however are notorious for having shares to short because you have the ability to locate and route your own shares.
Now go put it to work before telling me I am wrong!
-KSK8
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ron22
255 posts
msg #145730
- Ignore ron22 |
12/27/2018 2:18:39 PM
KSK8 or anyone else, I only have an IRA account and cannot short stocks. Is there a way to reverse the criteria to make this a long filter?
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KSK8
561 posts
msg #145732
- Ignore KSK8 |
12/27/2018 3:28:33 PM
ron22,
The inverse of this system unfortunately just does not work. This whole concept is based upon a number of factors that can't be flipped to the bullish side such as bagholders dumping their shares and the prospect of panic selling. Phenomenons like these make this system work beautifully. The challenge for a lot of people however regards finding shares to short of hard-to-borrow stocks which can be done easily if you have a broker that allows you to route and locate shares by yourself.
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