Stock Runing Up : (Trading System 1)
We look for stock that move up quickly within few seconds.
This alert is provided by trade-ideas.
More info for this alert.
Below you can find a description of filters we are using to pick only the best patterns.
Buy Rules :
- Stock that get a RU Alert. (Trade-Ideas alert : Running Up)
Sell Rules :
- Sell the stock after 2 hours.
- Stock Price >1$
- Stock with a spread < 20 cent
- Average $ Daily Volume > 10 000 000$
- Volatile Stock : Volatility > 0.4%
- Current volume (Relative volume) > 6
- Specific RU filter < 4
(The specific filter value is not reported with the alert, It is possible to set a minimum value but not a maximum value, so you can't use this filter because it need that you put a maximum value of 4.
In trade-Ideas API, this specific filter value is reported so i can discard all alerts that have Specific RU filter > 4.
To resolve this problem and let you use this trading system and future trading systems that use specific filter, i will create a little software that use Trade-Ideas API. This software will show you specific filter value for each alert reported.
Should be ready in two weeks)
Very important information :
- We are using a simple sell rule, because we use an automatic system for picking theses stocks, and we are handling lot of data.
It means that if you use personal sell rules, you can highly improve this trading system results.
Here is some suggestions of what you can do :
- Use stop loss to protect you from loosing trades.
- Don't close the winning trades after 2 hours and let your profit run.
- Close position if it show a bearish pattern.
- Use a profit target to close positions.
Now this is the results and graph for this trading strategy :
Number of trades : 148
Winning trades : 74
Loosing trades : 72
Average performance per trade : 0.18%
Average Daily performance : 0.36% (For 2 hour holding period we can easily take two positions per day if there is enough alerts)
Average Monthly performance : 7.84%
NB : The average performance per trade is calculated with 0.1% commission and 0% slippage (We don't consider slippage because we buy and sell at the market price).