Strategy Session: Objects in Motion Stay in Motion
at 2006-04-04 01:40:29
Issac Newton's First Law of Motion: Law of Inertia explains the basics of planetary motion, coach potatoes, and our latest Strategy Session. This one in particular has us rubbing our hands together because it:
- Is simple to understand, like Newton's first law, and yields predictable results
- Is germain to market conditions we are currently experiencing (See yesterday's post)
- Reveals what innovative improvements are coming to Trade-Ideas
The Strategy: Objects in Motion, Stay in Motion
This strategy extends the premise of an earlier strategy we discussed ("Strategy Session: 40+ and Going", 9/23/2005). The idea is simple: Be alerted any time a stock makes a daily high that is the 100th occurance or more. If a stock makes 100 highs in a trading session it has high odds of getting to 150 or 200 or even 300 high occurances. Basically this strategy looks for trains out of the station, running full speed ahead, and on a non-stop route to its next destination. It's a great and one of the few strategies for the afternoon and closing sessions of the day. All aboard ...
How Its Modeled
The set-up includes these filtering conditions:
The alert within this filtered universe appears any time there is a print for a higher price than the rest of the day.
Here's What's Coming
Finally this strategy serves as a good illustrative example of what will soon be added to Trade-Ideas: We are testing an add-on module for Trade-Ideas that will allow a subscriber to calculate odds of an alert being higher or lower based on historical data and configurable time frames. The new functionality will answer the question:
"What are the odds of a stock being higher by 50 cents, 30 minutes after this alert takes place?"
The feature produces a set of probabilities for the subscriber that serves as valuable feedback for the creation of trading systems. Take the "Objects in Motion" strategy as an example. In addition to the real-time output of stocks that match the strategy's criteria, a trader will also reference probabilities for selected price targets (e.g., 50 cents) over time frames (e.g., 30 minutes) for each alert produced.
Look at our What's New section of our website for the running list of what we've been adding recently.
Footnotes:
- Configure this strategy for your own use here.
- Link to other Strategy Sessions here.
- Remember that these set-ups are sketches meant to give you an idea how to model your own trading plan. Use this 'as is' or modify it to your own liking as many others do. Know, however, that Trade-Ideas.com and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, alerts and all other features are for research purposes only and should not be construed as investment advice.
- June Seminar Footnote - To gain a full understanding of how this strategy and others can help you in your trading plan, we suggest you attend our training seminar in June. There we will focus on all the advanced aspects of our software needed to give you an edge against larger, more capitalized participants. We just opened the sign up page so that you can officially pay for and reserve your spot (conference limited to 100 existing subscribers). http://www.trade-ideas.com/Seminar/
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