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Registered User
Joined: 4/18/2005
Posts: 4,090
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For those of you curious I am still trading this strategy and scan and still gettign good picks nearly every night, and nearly reguardless of market condition.
Recently it lead me to SWIM which was a hugely proffitable trade for me as well as IEX,PAS and AGN.
Most of my loosing trades have been cases where I broke my rules of this approach and or used a different strategy.
All of my tradeing so far has been very short term and quick in and quick out. My longest holdings were two weeks and turned out to be "over held". So in general My approach has been to use the system to look for probable momentum energy and take what I get in a few days if it dosen't come. This has created some trades that were hardly worth entering but were still proffitable and not a loss. We do our best to avoid these but you can't get every trade right.
so far the strategy has produced a win loss ratio of 67% to 33%. I't was higher but I did a dum thing with CAL and took a moderate loss.
for those who haven't read the previous thread the "simple apraoch" is simply scanning for stocks where TSV and MS both cross their respective Moving average or centerline at the same time on good volume, which I define as greater than a moving average of your choice. from there chart reeding skills are needed to try to avoid false signals and what ever entry and exit strategies you use to manage your trades with.
The scan produces more opportunities than can I can afford to trade and trade management is still somethign I need to work on as I'm building a nice collection of "Premature exit"s in my review notes. But the end result is what we're all after, an upward angled equity line.
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Registered User
Joined: 9/13/2006
Posts: 143
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67 -33 is fantastic, thanks for sharing.
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 Gold Customer
Joined: 11/11/2006
Posts: 359
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Scott: What do you thnk of RGLD? Notice some gold stocks seem poised...
Mammon
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Registered User
Joined: 4/18/2005
Posts: 4,090
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You might want to watch Peters Recent video on the home page.
RGLD.. I like it for the short term, which is basically all I do. For my tase with todays .84 and yesterdays 1.29 move i'd be inclined to wait for a better entry. At this point my system reguards RGLD as tradeable anytime a reasonable entry presents it's self. SWIM made it's signal move in July. I then waited untill yesterday to enter... actualy entered the order good untill cancelled two days ago... and modified it yesterday before market.
So RGLD if you enter now I wouldn't expect to see returns as great as it has already traveled. In a week or three a lower risk entry may be had and current high will make a nice target price... unless price goes sidewayse from here then still a lower risk entry will present it's self in the form of an entry closer to suport.
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Registered User
Joined: 5/2/2007
Posts: 59
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Scott, i'm the newest student to the "Simple Approach" but im not sure if you guys have different settings, i got a TSV 26, MS 22, these two alone return 76 stocks(as of today 8/11), when i add on the "sweet spot" i get just 1 stock, isn't that weird cuz im sure more than one stock is trading btn its EMAs 20 and 50
so i guess when i add on Volume or any other criteria i will get -ves anyway i see your approach, i had to go back and read the may notes, plus where to you fit in the "this is set between 6-59" when all results are true or false for the MS and TSV?
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Registered User
Joined: 4/18/2005
Posts: 4,090
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sounds close.. I've got 41 in last nights scan. Today isn't the greatest day.. I got whipsawed by NYX who showed up on the scan the other day. I reguard them as tradeable so long at they have TSV and MS above their centerline or Moving average . and prece above the 50 ... unless it is way below the 20 then i'm open to counter trend trading.
I have MS crossing 25 day Ma.
MS > XAVG(MS,25) AND MS1.1 <= XAVG(MS1.1,25)
TSV crossing Zero
XAVG(TSV,24) > 0 AND XAVG(TSV1.1,24) <= 0
And 20,40,50 moving average convergence set rank 6-54.
((ABS(XAVGC20 - XAVGC35) + ABS(XAVGC40 - XAVGC35) + ABS(XAVGC50 - XAVGC35)) / XAVGC35) * 100.
you can fiddle with this one. the others are TRUE false.
I don't add the volume greater than 15 exponential moving average to the scan.
V > XAVGV15
I sort by it. It gives me a sense of how many are moving on low volume .... and I'm not opposed to entering on those IF all other things look stellar AND the gain that day was not extrordinary (for me greater than one point or 1.50). But if I have better looking stocks that had bood volume i'll select those first.
I don't know that there are allot of "students" but thanks. Jsut remember that this is not a blind system. I lean heavily on candles for entry and I enter above the current close... generaly the previous high... Unless the whick it really tall then I either skip the trade OR trim the whick.
Now is a dangerous time to be going long... I think this scan will shine after this correction concludes. for now I only nibble trades here and there.. idealy these picks can be held for a conventional swing trade, but i'm not gutsy enought to do that now. I use Stochastics, MacD, Vol, Wildrs RSI, multiple moving averages an others during my analysis.
Hope this helps
Scott.
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Registered User
Joined: 4/18/2005
Posts: 4,090
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Only had 7 or so charts sho up last night.. and similar numbers the night before.. so i didn't really mess with trading... I thought it was risky to open shorts now though.... guess I thought wrong.
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