Day trading systems


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January 26, 2006
NR7 Alert and Min Spread Filter
I like Trade-Ideas because they provide the best real time scanner in the market and they try to keep their software the best one by adding constantly new features.
Trade-Ideas update can be improvement in the software itself or addition of alerts and filters.
This week, we got a new alert and a new filter update, they are not related but I think they are great addition.
First, the alert consist of a NR7 pattern; it's is a chart pattern based on traditional candlesticks...
NR7 Alert and Min Spread Filter - Read more

January 25, 2006
Buy stock on pullback
In my opinion it's always better to buy a stock in an uptrend than to buy one in a downtrend.
One strategy that is well known, but I personally never tested it, is to buy dip on uptrend.
Buy on a pullback while stock is trending up, is one common strategy used by many traders over the world.
This strategy can be modeled in Trade-Ideas and I will start back-testing it soon.
Buy stock on pullback - Read more

January 23, 2006
Day trading systems update
A new buy rule was added to day trading system 5 (CHBOC Alert).
The new rule is: Day range > 90%, the others rules remains the same.
The new daily return is 0.52%.
Day trading system 6(CARC Alert) show a negative performance, we will let it run for some weeks and if the return remains negative then we will replace this strategy or try to find a profitable set of filters with the CARC alert. CARC daily return is -0.08%.
Day trading systems update - Read more

January 20, 2006
TICK and TRIN webinars
I have found a very nice Webinar about TICK and TRIN on the CBOT website.
Here is the URL:,3206,1058+21727,00.html
You can download this Webinar and watch it with real player or download a slide.
If you take a look at available webinars in CBOT, you can find others webinars talking about TICK and TRIN.
The author of this Webinar, did some interesting statistic regarding TICK and TRIN data.
TICK and TRIN webinars - Read more

January 19, 2006
TICK and TRIN indicators
TICK and TRIN are two indicators that measure the general sentiment of the market.
They can be used both to determine near term market movement.
Theses indicators are not well know by traders, and because they can be very important in implementing trading strategies, I will explain in this article what theses indicators are about.
First the tick data can be found on the NYSE, NASDAQ or AMEX; TICK on NYSE is the difference between the up ticks and the down ticks for all stocks that are traded in this exchange.
Example: Now, there are 400 stocks whose last trade is an up tick and 200 stocks whose last trade is a down tick, the Tick data show then a value of +200.
TICK and TRIN indicators - Read more

January 18, 2006
Daily return of trading systems
The five trading systems were updated yesterday. Monday, US market was closed.
There were some minor changes in theses trading system performance.
The running up trading system get an increase in daily return and it show now a return of 0.48% daily, that is about 10.58% monthly. Channel breakout system return decreased and shows a daily return of 0.44% or 9.66% monthly.
Daily return of trading systems - Read more

January 13, 2006
Is ADX the best technical indicator?
Here is a link where people are talking about ADX (Directional movement indicator), they are saying that ADX is probably the best indicator that can be used for scalpers, day traders, swing traders an even position traders.
The first thing I did after reading this thread, is creating a trading system based on this indicator and back-testing it. The problem is I don't have tick data, so I used end of day data, and came up with very nice results, so I really suggest you to consider the ADX and to do your home work (back-testing)...
Is ADX the best technical indicator? - Read more

January 12, 2006
What make a stock suitable for day trading?
Every stock must have some basic characteristics or factors that make it suitable for day trading; the following characteristics are the most important:
•  Liquidity
•  Spread
•  Volatility
First, liquidity is necessary because you want to enter and exit a trade quickly. Liquidity also makes some pattern to be stronger, imagine a channel breakout that occurs; if the stock is not liquid then nobody will make the stock moving higher.
What make a stock suitable for day trading? - Read more

January 11, 2006
CHBO Outperform Russell2000 Index during bull and bear market
I will compare in this article; the performance of CHBO alerts VS performance of Russell2000 index. To be profitable, an alert should outperform the index in bull and bear markets.
For each trade I am taken, I calculate the Russell2000 Index performance during the holding period of the trade.

CHBO Alert for GOOG, I buy the stock 400$ at 10:00 and sold the stock 410$ at 12:00 for a performance of 2.5%, during that time the Russell2000 Index was at 660 at 10:00 and 666,6 at 12:00, its performance then was about 1%. The stock outperformed the Russell2000 Index.
CHBO Outperform Russell2000 Index during bull and bear market - Read more

January 09, 2006
2 TD (Trading System) added and 2 TD updated
RU and CHBO TD were updated yesterday; the new ones show respectively a daily return of 0.24% and 0.6%.
The new trading systems are based on the following alerts: CHBOC and CARC, Channel breakout confirmed and Close above resistance confirmed alert.
Both systems show more winner than looser with a very nice daily gain, also both systems need to be confirmed with more data.
2 TD (Trading System) added and 2 TD updated - Read more

January 06, 2006
Filters and strategy performance
A minor tweak in a strategy filter can completely change this strategy performance; that's what I found when tweaking my trades' database of Trade-Ideas Alerts. My first screen consists as I said in previous posts, in simple but important filters (Liquidity, volatility, spread, relative volume). In this screen I checked all long alerts, to be able to previous all their performance after getting some data. When I check my database for all CHBO trades, I am getting about 1200 results (for near one month now). The average performance is not so good, but tweaking filters value improved my results.
Filters and strategy performance - Read more

January 05, 2006
New trading strategies for next week
Until now, I am not sure which trading strategies I will add for the next week.
I think I will add two more strategies but don't know which ones.
I will focus not only on the performance but also on the number of trades, to make sure the performance shown is accurate. I am getting a lot of alerts per day, probably on average more than one hundred for each alert type, but when I filter theses alert using for example day range filter or quality filter to get good alert performance, the average number became less than 5 alerts per day.
New trading strategies for next week - Read more

January 04, 2006
Yesterday, Trading System 4 picks
Here is yesterday GBBOT alerts, the system (Trading System 4) picked
03/01/2006 09:39:47 - Buy ALY @12.9$, Sell @12.9$, Performance: 0%
03/01/2006 09:37:42 - Buy PRLS @8.49$, Sell @8.53$, Performance: 0.47%
Average Performance: 0.235%
Trading System 4 picks - Read more

January 03, 2006
Day trading tool
Everybody knows how difficult day trading is.
Statistics show that day traders are more likely to loose than to win, but having an advantage over other day trader can be the clue of your success.

This advantage can be a combination of paid or free tools that are available on the net.
These tools generally assist you in identifying market trends and potential day trading opportunities.
Day trading tool - Read more