On the beaches,
just to be clear, this is my personal take on this... but for what it is worth:
I use existing software filtering as I am just trying to sift through stocks that are trending upward (as I am a momentum trader). This means that you have to step back, and work out what sort of results that you want to seek out. For example:
Stocks from 0.05 to 1.00
Stocks with >500,000 volume per day
Stocks above the 50SMA
Stocks above the Bollinger (adjusted to my settings)
And this will give me a set of 30-60 stocks from 2000 or so.
From there I am going to look over them 'by eye' and just look for 'a nice curve'. That process, using the software takes about 3 minutes from start to finish. I then place the trades and walk away. Yep, walk away and let my trades/stops do their thing. Sounds simple? Well it is. And more to the point, why would I be bothered trying to code this, when someone has already done so. I can code, but for the life of me I cannot code as well as the guys that make this stuff. They are well ahead of the curve on me for this software. Some of it is a work of art.
From there I just apply some of the rules that you would see in the videos I referred you to and... I have a list of stocks that is going up, for how long you and I don't know. But if I put stops in below the buy point, then I can only lose a set amount and if they run...? Well that is why we trade.
One thing also that I hardly ever hear anyone on this forum mention is applying an 'Index Filter'. That is, if the ASX index (AORD code) is applied to my results, then I may sit out trading for the day/week/month? that the index is going South. Why place trades that are statistically going South? Save your money and sit it out until things fire up again.
Put all that together and... you have a trading strategy. Should you use this? Hey I don't know. You need to find something that works for you and lets you sleep at night. But if you want to try this out as a strategy go crazy, and of course, tweek it to suit you as you like.
Good luck with your trading, and keep asking questions!
Expand
