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Harley,
I'll do that some time when I have a little more time.
JimG
-----Original Message-----
From: Harley Meyer <meyer@xxxxxxxxxxx>
To: metastock@xxxxxxxxxxxxx <metastock@xxxxxxxxxxxxx>
Date: Sunday, November 15, 1998 9:04 PM
Subject: Re: Stock Trading Building Blocks
>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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