msummer2007
129 posts
msg #51021
- Ignore msummer2007 |
4/11/2007 5:31:41 PM
Hi gang, I don't post many entries on the board, but I have a filter that I would like to share. I have been been using this filter to trade options. It has worked well over the last few months. It is actually a compilation of everybody's ideas. There have been many tremendous ideas on this board. It is a pleasure to read the posts and to be honest learn a lot. This filter is for short term traders like myself, who don't mind holding for a week or two. If someone can improve this filter even more I would be much obliged.
Show stocks where weekly RSI(2) has reached a new 6 month low within 1 week ago
And weekly RSI(2) has been increasing for the last 1 day
and stock is optionable
And price is above 15
Once again thanks!
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moneycat52
1 posts
msg #51045
- Ignore moneycat52 |
4/12/2007 6:54:19 PM
msummer2007,
I changed the exit criteria and came up with 79% wins, so I am impressed with your filter. I trade options also. I have 7 stocks I focus on, but they are all over $50, which as you know, limits the profit potential with higher premiums. Do you do any other type of screening prior to using a stock that comes up from your filter screen?
Thanks, pk
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msummer2007
129 posts
msg #51046
- Ignore msummer2007
modified |
4/12/2007 9:27:29 PM
Moneycat52
I have found with this system, that the best plays are the stocks over 40. Before I enter a trade, I take note of the low for the day the system is triggered. This becomes my stop loss number. Sometimes I will give a stock a little leeway, especially if the market is having a rough day. By leeway I mean no more than .50 below that low. I scale into my trades as well. I will start with 3 contracts the first day, and if the stock is proceeding as I wish, I will add to my position on the first pull back to the high of the day of the trigger. the I add 3 more contracts. That is my position size per trade. If you enter a trade and it goes against you in the first 2 days, dump it, and don't look back. There are so many decent plays with this system you will soon forget about that trade. I wish you luck with your trading, and I hope this helps you as well. Also I would like to mention that I play the in the money short term options on this system. It gives you the quickest bang for your buck.
Msummer2007
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Arooj
15 posts
msg #51674
- Ignore Arooj |
5/18/2007 7:30:45 AM
msummer2007,
this is an excellent filter, one that I hope inspires others.
I think a careful approach to using options the way you describe is a good way to leverage your $$$. I am working on various volume and closing parameters which hopefully will reduce the number of results (it's a little surprising that there are so many, even when changing prices to above 40), and I'll share these if they bear any fruit.
IMO maybe 10 - 15 picks a week is plenty, unless of course there's a way to automate this.
:-)
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maxreturn
745 posts
msg #51675
- Ignore maxreturn |
5/18/2007 8:11:49 AM
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bloosteak
35 posts
msg #51685
- Ignore bloosteak |
5/18/2007 5:49:27 PM
I've found bollinger band break filters to work well with options. Only for biotechs that seem to stay flatish and breakout though.
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msummer2007
129 posts
msg #51732
- Ignore msummer2007 |
5/21/2007 5:30:44 PM
Hey Gang Thanks for the input, I have another filter that I have been working on that has produced some serious results over the last 6 months. What I like about it is the draw down is very small. Like I stated before, I trade strictly options, so it is imperative that I get in a trade correctly. With this system, once again, if the trade goes sour within the first 2 days dump it.(and take the small loss) This system also produces a large number of trades. I have found when the trade goes in your direction from the beginning, just sit back and watch. I have parameters of 10%, but I usually try not to be to greedy. So I exit many of these trades after 5-7% gains. Here is the system.
+di(14) has reached a new 2 month low within the last 2 days
And +DI(13) is crossing above +DI(14) 2 month low
And stock is optionable
and price is above 30
Good luck and happy trading!!!
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bloosteak
35 posts
msg #51733
- Ignore bloosteak |
5/21/2007 6:01:24 PM
Have you thought about adding another line to both of your filters to weed out the stocks that are basically flat? It seems like the stocks with high volatility up and down perform the best.
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msummer2007
129 posts
msg #51737
- Ignore msummer2007 |
5/22/2007 5:09:01 AM
Bloosteak: I agree with your idea, but unfortunately my expertise in writing these programs leaves something to be desired. If you could help, and add the final piece to the puzzle, I would be grateful. I would like to add a statement that finds these high volatility stocks. Because I haven't the knowledge, I have traded the highest priced stocks, regardless of the volatility. The percentages have still been favorable, but adding that piece would be magic. Of course lets take into account that the markets have been favorable to any system lately. These days will not last forever. We should all collaborate, and develop a put system now(for the near future). Thanks Bob
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mktmole
325 posts
msg #51740
- Ignore mktmole |
5/22/2007 9:41:39 AM
bob, try this for stocks having the highest volatility range of the close over past 3 months..
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