Ok, i have a system . . .

[Moneymakingmachine]

I've been sat at my computer for weeks, building and back testing a strategy I've developed. I'm new to financial markets, but I trade betfair full time and want to start trading stocks. I wanted to develop a system that avoids executing positions during a sideways market, but at the same time gets on the big trends. Here was my thought process behind the strategy:

Trend followers struggle during periods of low volatility.
Trend followers cash in on trending markets
Bollinger bands measure volatility
Moving averages are good for identifying trends
Ichimoku cloud is good for getting on some big moves as well

My aim was to combine the three in a way that helps you avoid sideways markets, but still catches the moves.

So i've gone through all the past data, and it has made a profit. I've tested it on stocks, and fx. The problem is, stocks tend to mirror each other, especially intra day. I don't really want to trade indices, because then i could be sat on my **** all day waiting for a signal. If i trade the individual stocks, the signals all come at once on 50 or so stocks !

Can anyone advise me on how i could maybe filter out a few stocks each day, instead of watching all ftse 100 stocks and buying into 50 or so at a time, which i don't really want to be doing.

Thanks all.

 

[Blaiserboy]

perhaps you have a screener in your charting program and could set parameters to scan for and then make choices as to which candidates you want to trade

 

[Moneymakingmachine]

Hi mate,

Yes i do have a screener, however when it does find stocks that fit the criteria it pulls up 50 or so stocks at once. I need to find a way of bringing that down to 8 or 9 stocks to focus on.

 

[Blaiserboy]

Hi mate,

Yes i do have a screener, however when it does find stocks that fit the criteria it pulls up 50 or so stocks at once. I need to find a way of bringing that down to 8 or 9 stocks to focus on.

perhaps you want to look at finviz and review the fundamentals to select the best candidates... perhaps you can screen fundamentals at the same time as the original scan with your software.

 

[Moneymakingmachine]

Ah, fundamentals !

Never even thought of it, thanks bud

 

[Blaiserboy]

Ah, fundamentals !

Never even thought of it, thanks bud

I think you would want to have a look at fundies anyways, some softwares provide some excellent fundies data whereas others have minimal, that's why I mention finviz.

Don't burn out the screener overnight, let it cool off for a while..... lol

 

[Moneymakingmachine]

Yeah just had a look at finviz and it looks pretty sweet. I've just come across a small problem though: I no feck all about fundamentals

Time to spend another three weeks at my computer then D

 

[Moneymakingmachine]

While i'm awake, would it be possible for any experienced traders to help me. I 'think' i'm on to something with this strategy (famous last words) and i would appreciate it if there is anyone out there that has experience in the markets to tell me if i'm wasting my time or not. Or if not, how to develop the strategy further.

Thanks a lot.

 

[meanreversion]

What software are you using?

 

[JahDave]

I've been sat at my computer for weeks, building and back testing a strategy I've developed. I'm new to financial markets, but I trade betfair full time and want to start trading stocks. I wanted to develop a system that avoids executing positions during a sideways market, but at the same time gets on the big trends. Here was my thought process behind the strategy:

Trend followers struggle during periods of low volatility.
Trend followers cash in on trending markets
Bollinger bands measure volatility
Moving averages are good for identifying trends
Ichimoku cloud is good for getting on some big moves as well

My aim was to combine the three in a way that helps you avoid sideways markets, but still catches the moves.

So i've gone through all the past data, and it has made a profit. I've tested it on stocks, and fx. The problem is, stocks tend to mirror each other, especially intra day. I don't really want to trade indices, because then i could be sat on my **** all day waiting for a signal. If i trade the individual stocks, the signals all come at once on 50 or so stocks !

Can anyone advise me on how i could maybe filter out a few stocks each day, instead of watching all ftse 100 stocks and buying into 50 or so at a time, which i don't really want to be doing.

Thanks all.

Good luck with that...........I will continue with Elliott Wave myself..

 

[Moneymakingmachine]

What software are you using?

IT Finance

 

[Moneymakingmachine]

Good luck with that...........I will continue with Elliott Wave myself..

I'm learning elliot, i bought some books on the subject. Maybe i should integrate the theory into my strategy

 

[meanreversion]

That's the white label of ProRealTime, which I used for a while. It's good software, however the main drawback is that you can't test on a portfolio. For that you need something like Amibroker (even CGQ won't test on a portfolio).

If you're able to pick up programming language fairly quickly, I strongly advise you switch to Amibroker. Their language is C++ based, it takes a little getting used to, but you will no longer need to guess about putting several stocks together in a portfolio.

(It's cheap as well!)

 

[meanreversion]

Very, very tough to backtest Elliott, no point even trying.

 

[pboyles]

Hi mate,

Yes i do have a screener, however when it does find stocks that fit the criteria it pulls up 50 or so stocks at once. I need to find a way of bringing that down to 8 or 9 stocks to focus on.

Rank them by volume, then you'll avoid looking at stuff that will be hard to get filled on.

 

[Moneymakingmachine]

That's the white label of ProRealTime, which I used for a while. It's good software, however the main drawback is that you can't test on a portfolio. For that you need something like Amibroker (even CGQ won't test on a portfolio).

If you're able to pick up programming language fairly quickly, I strongly advise you switch to Amibroker. Their language is C++ based, it takes a little getting used to, but you will no longer need to guess about putting several stocks together in a portfolio.

(It's cheap as well!)

Thanks mate, i'll take a look

 

[Moneymakingmachine]

Rank them by volume, then you'll avoid looking at stuff that will be hard to get filled on.

Hopefully, one day that will be a problem for me

 

[Shanghai]

Hopefully, one day that will be a problem for me

He's right. If the stock you want to trade has low liquidity you could find that you are filled at a price far away from what you expected. I would restrict your trading to the higher volume stocks if you want to trade fairly frequently.

 

[Moneymakingmachine]

oh, i thought you meant getting my orders would be too big for the market. Please excuse me, i've still got my betfair head on.

 

[songcon]

Hi mate,

Yes i do have a screener, however when it does find stocks that fit the criteria it pulls up 50 or so stocks at once. I need to find a way of bringing that down to 8 or 9 stocks to focus on.

You can do a second screening, ten at a time on your 50 stocks with this tool from Stockcharts.com:

http://stockcharts.com/scripts/php/...,eslr,jaso,csun,ldk,stp,spwra,fslr|C|A12,26,9