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Hello Jim,
You have written a little about bottom fishing and how you select those
stocks. I would be interested in the other searches. Not so much the code
but the fundamentals in the search criteria.
Harley
Jim Greening wrote:
> All,
> This may be slightly out of scope in that it is a larger topic
> than just MetaStock charting and testing, although that's definitely a
> good part of it. I thought it would be interesting to share our ideas
> on the building blocks or elements of a complete stock trading
> methodology.
>
> I have tried to build my own trading system on what I think is a
> logical set of building blocks. The elements of my trading system
> follow:
> 1. A systematic method of narrowing the universe of stocks to a few
> potential trading candidates that have certain characteristics that
> have resulted in successful trades in the past. My searches or
> filters use a combination of fundamental and technical criteria.
> 2. A market tracking mechanism that indicates when it is OK to enter
> a position and whether that position should be long or short. I use
> trend channels for this.
> 3. Tests and a methodology for making the final stock selection for
> new positions.
> 4. A money management system that limits overall portfolio risk on
> each new position and tells how large each position should be. I
> won't risk more than 5% (usually 2 to 3%) of my portfolio on any one
> position.
> 5. A method for setting stops and targets although targets are not
> always required. Stops should be based on Technical Analysis rather
> than an arbitrary percentage or point move. Stop placement tied back
> to money management can affect position size. Again, I use trend
> channels for this.
> 6. An exit strategy. Mine is simple, exit when a target or stop is
> hit.
>
> Does anyone have any comments on the above building blocks? Any
> to add? Do you disagree with any? Is anyone interested into going
> into details on each of the building blocks?
>
> JimG
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