I've been working on a screen that uses 6 technical signals for the last four years. A lot of this was at first "fitting" the screen to results. But over time I have dialed this in to where I am very very close to finally getting this right.
Just like in stocks, there are moves in the small cap space where large funds don't "play" because volume is too thin. In small caps, there is an edge.
Knowing this, I thought to myself several years ago, "…why jump on a trade like $NVDA that would need this huge VAR in order to make it work? Basically signing up for 100% systemic risk during the holding period?"
I used to think the above results were only found in $SPY, but the more I moved away from index funds the better the backtesting. So it turns out, every week on a Thursday stuff like the above happens. Its even better when you find the pattern in a stock that doesn't have weekly options, so it only happens once a month.
Ask any questions you like, but I'm going on record here because eventually I'm going to not only capture one of these trades but be early enough to where I can get 80-90% of the meat of the move. I can't stand when people show up with huge results and never first painted a picture of what the strategy was trying to do.
Years of research into this screen – Friday results were +2,000%
byu/BostonM2 inoptions
Posted by BostonM2
4 Comments
Isn’t that volume really low? What exactly are you doing?
my hat’s off to you.
right now im looking at TI’s:
* RSI
* 20 / 50/ 200 day MA’s
at the end of the day im looking to build some strong “buy” signals such as:
* RSI at or below 30
* When 20-50-200 day MA’s converge within X dollar amount
* When 50-day-MA crosses upwards in to 200-day-MA (IE, golden cross)
that’s all i have for “buy signals” & am looking for others if you dont mind letting me in on some.
again, helluva job m8.
What took you six years to do?
Now you only need like two more years to prove the model.
People show the massive gains but won’t show the stocks/ strategies because the second you tell someone about a pattern, you will get priced out. We’ve all spent years building towards a profitable strategy. I think its only 5% of us actually make it profitable.