Stock Screening & applying your system

Hi Everyone,

I have a system which I am using to trade stocks. It based on Chick Goslins 3 line system. I have condensed the way he interprets these lines (e.g. bullish or bearish) into a custom indicator (I use ProRealtime for trading). I then use the value of this indicator to screen stocks in the FTSE 100 and FTSE 250

Obviously this selects different stocks each day I run it. So my question is. Should I apply my system to a predefined selection of stocks, or apply the system to all stocks that meet my criteria.

I have back tested these my system on most of the stocks that are highlighted and some tend to work better with the system than others. For those of you that do trade stocks what do you find works best?

Thanks,

Rob

rfk_from_za said:

Hi Everyone,

I have a system which I am using to trade stocks. It based on Chick Goslins 3 line system. I have condensed the way he interprets these lines (e.g. bullish or bearish) into a custom indicator (I use ProRealtime for trading). I then use the value of this indicator to screen stocks in the FTSE 100 and FTSE 250

Obviously this selects different stocks each day I run it. So my question is. Should I apply my system to a predefined selection of stocks, or apply the system to all stocks that meet my criteria.

I have back tested these my system on most of the stocks that are highlighted and some tend to work better with the system than others. For those of you that do trade stocks what do you find works best?

Thanks,

Rob

Click to expand...

Now this is a much more complex issue than it first appears to be. I have tried both the chicken before the egg and the egg before the chicken. In the end IMO it all boils down to intuition which can only be acquired and utilised with confidence through practise and experience. I suspect a true master of trading can successfully trade anything. (I hasten to add I am nowhere near those dizzy heights!)

I have a whole battery of stock screeners at my disposal and have realised through time that they are only of limited use in so far as they narrow down a selection of stocks which are likely to move within the selected time frame.

The next step is to impassively engage the best screener of all - one's brain - and home in on one or two that immediately stand out.

I assume you are aware of factors such as support and resistance, earnings reports etc. I usually enter selected stocks into EXCEL where position sizing according to risk etc. is auto calculated.

Do not pull the trigger until you are 100% certain. I cannot emphasise this point enough.

Passive engagement is a useful skill to develop.