Trading Systems

Portfolio SC1 update (14/02/2006)

2006-02-14T03:40:00.000-08:00

This week, i sold PWEI shares in Portfolio SC1. I kept others stocks witch are CFK and DXPE.The average performance of the portfolio for the last week was -17.33%, that was a very bad week.Market value for this portfolio is currently 11 214$, a gain of 12.14%, the biggest draw down I experienced since I am running this portfolio with real money is -17.33%.The portfolio is running since 11/04/05

Great software for day traders

2006-01-26T04:57:00.000-08:00

Have you ever heard about TymoraPRO software?Probably not, because it’s not well know. When visiting their website and taking a look at their software features and videos presentations, I was very impressed. This software rooks; it is really a paradise for day traders.This software offers a detailed analysis of equities, forex and futures depth books (Great for tape reading); it offers nice

Stock market articles

2006-01-25T02:19:00.000-08:00

I have found for you some interesting articles about the stock market.They are all published in about.com website and they deal about different aspects of the stock market.The first article deal with Earning estimatesThe second one title is Understanding Earnings SeasonThe third one also deals with earning and is titled: Beating Earnings EstimatesAnd the last one that talks about earning is

Portfolio SC1 update (23/01/2006)

2006-01-24T02:23:00.000-08:00

No change in Portfolio SC1 this week. I kept all my stocks witch are CFK, DXPE and PWEI.The average performance of the portfolio for the last week was -2.65%, pretty the same as the indexes performance.Market value for this portfolio is currently 12 113$, a gain of 21.13%, the biggest draw down I experienced since I am running this portfolio with real money is -11.51%.The portfolio is running

Paper Trading

2006-01-20T04:34:00.000-08:00

A great way to learn trading is to use software that let you simulate orders.With your real time data, you can submit buy or sell orders; but theses orders are simulated; this is a way to learn trading without loosing money.You can do that everyday, learn how stocks are reacting to news, to market, to volume… and construct progressively your trading system.Some people are saying that learning

How to trade pivot points?

2006-01-19T03:57:00.000-08:00

Pivot points are common used by traders all over the world, theses points are working because floor trader are also using them; they act as resistances and supports.Pivots point can be used in different time frames; they can be used daily, weekly or monthly.Here is the calculation of theses pivot points R2 = P + (H - L) = P + (R1 - S1)R1 = (P x 2) - LP = (H + L + C) / 3S1 = (P x 2) - HS2 = P - (H

Portfolio SC1 update (18/01/2006)

2006-01-18T02:49:00.000-08:00

No change in Portfolio SC1 this week. I kept all my stocks witch are CFK, DXPE and PWEI.The average performance of the portfolio for the last week was 3.91%, which is a good performance; Indexes performance helped stocks to achieve this gain.Market value for this portfolio is currently 12 443$, a gain of 24.43%, the biggest draw down I experienced since I am running this portfolio with real money

Consider working with buy rules first

2006-01-13T05:01:00.000-08:00

Suppose you want to build a trading system and you already have buy rules but still trying to found the best sell rules that make your system the most profitable. In order to not loose your time and to make sure your buy rules are correct, I suggest that you work first with an exit after N day as sell rule, you can vary N to make sure your system is profitable over different holding periods. If

Tape reading for timing

2006-01-12T04:09:00.000-08:00

Tape reading or the reading of moment by moment transactions in a stock is widely used by traders, institutional, professional and hedgers.It can help them seeing in real time, the current consensus for a stock.Tape reading consists of reading order books which contain the current bests bid and ask prices and their respective sizes.Here is an example of an order book66 9737 9 973855

Trading business plan

2006-01-11T13:13:00.000-08:00

I have found on FutureMag some articles about building a trading business plan.That will be your first step before building a trading system.Theses articles begin with an introduction to the trader’s business plan then talk about markets mixing, learning, staying informed… Others aspects like finding a broker, software and hardware needs in future trading, and regulations are also covered.I have

Portfolio SC1 update (09/01/2006)

2006-01-09T03:53:00.000-08:00

No stocks to buy this week for my portfolio SC1.The last week was very profitable, the portfolio gain 9.29%.Here are stocks in my portfolio SC1:CFK is gaining 43.98%DXPE is gaining 34.63%PWEI is gaining 6.32%Market value for this portfolio is currently 11 975$, a gain of 19.75%, the biggest draw down I experienced since I am running this portfolio with real money is -11.51%.The portfolio is

Is Put/Call Ratio out of date?

2006-01-06T01:38:00.000-08:00

Put/Call Ratio is used as sentiment indicator, trader use it to gauge the strength or weakness of the market.Data of Put/call Ratio are collected by the CBOE (Chicago board exchange), and is available at their website http://www.cboe.com.There is two Put/Call Ratios, one for equities and one for indexes, it is computed by dividing the total put-options volume by the total call-options volume in

Stock market rally and high interest rate are both benefic to US dollar

2006-01-05T02:23:00.000-08:00

US stock market rally can be benefic for the US dollar; higher interest rates can also be benefic for the US dollar.Theses two components, stock market and interest rates, are correlated to the US dollars.In fact, when the stock market is rallying, it provides an ideal investment opportunity for traders, theses traders will buy more and more dollars to invested in US stock market; this will make

What kind of trading system are you looking for ?

2006-01-04T01:35:00.000-08:00

The most popular term that contains “Trading system” and that people looked for on internet search engine was forex trading system.Why? Probably because forex market is the most used by investors, it has a daily volume of more than 1trillion dollars.After forex trading system, the next term is: stock trading system, then future trading system, then day trading system, then option trading system

Portfolio SC1 Update

2006-01-04T00:55:00.000-08:00

Yesterday, i sold BTUI and bought PWEI.My portfolio was again down for the week.Return the last week was about -2.2%Now, portfolio is invested with these stocks :CFKDXPEPWEIPortfolio current stock value is 10 957$, while the biggest draw down i experienced since i begin playing real money is -11.51%.

Stock Split (Part 2)

2006-01-03T02:06:00.000-08:00

Stock Split (part 1)Back-test problems:Lot of back-testing software provide feature to let you add stock split date in their data, so the software can adjust its quotes for every split you enter.The problem is that you can’t add all split’s events in your software because that too much works and too many stock splits happen in the market. Just take a look at stock split calendar in some website

Stock Split (Part 1)

2006-01-02T01:55:00.000-08:00

Stock Split definition:Stock split is a corporate action that increases the number of shares for a company but without any changes in stock’s market capitalization.Imagine you own 10 000 shares of company X and each share worth 20$.After a 2 for 1 split, you will own 20 000 shares and each one worth 10$.As market capitalization remains the same, there isn’t any change in the true value of the

Fire Your Stock Analyst, Book selection

2005-12-31T03:59:00.000-08:00

Fire Your Stock AnalystBy Harry DomashThe author of the book describes some systematic approach to pick winning stocks, he describe the best techniques used by leading money managers.These managers have beaten the SP500 over a long period with a track record.The book focus on fundamental analysis, it includes screening for candidates, determining stock valuation, setting a target price and a lot

Common mistakes in futures trading

2005-12-31T03:36:00.000-08:00

First, estimates suggest than no more than 10% of individuals who trade commodity futures win money.Others individuals loose money because professional are better trader than them.Professional know everything about what happen in markets, they know everything about the commodity they trade and they have generally much more experience.But the biggest reasons that make those individuals loose are

Free live webinars and the process of learning

2005-12-31T03:06:00.000-08:00

The key of success in trading is the process of learning.You need to spend some hours per day learning new trading techniques, improving your knowledge, learning from your errors…Trading learning is a very long process that never ends, it needs will from your side and also a lot of patience.It’s while learning that you would become a better trader.Error due while trading must also incite you to

Real time scanner

2005-12-30T04:20:00.000-08:00

I use since one year Trade-Ideas as a real time scanner.It provides me with good patterns, and I am very profitable using them.I developed some day trading systems using Trade-Ideas, you can find them at my other website www.day-trading.inSome days ago, I wanted to take a look at others real time scanner, to make sure that the one I use is the best one.First, it’s very hard to find one.The only

ER2 leading index

2005-12-30T03:41:00.000-08:00

There is lot a correlation between indexes.If Dow Jones Index moves, in most case SP500 and NASDAQ will also move in the same direction.Let say, you buy ER2 (Russell2000 Future) when he break its resistance.Do you think it’s necessary to pay attention to other indexes like YM, ES or NQ and look if they break their resistance too to confirm your trade? You can do that, but you will probably miss a

Industry EPS and Moving Average

2005-12-29T07:50:00.000-08:00

Do you want a simple screener with great results?In the screener I will show you now, I only use one fundamental ratio and one simple technical formula.Since 2001, this screener showed a total performance of 700% and annualized return of 51%.It consists of buying stocks in growing industry (Fundamental Ratio).Here is the description of this fundamental ratio (I will call it IndGrowth):Percentage

Watchlist for December 29, 2005

2005-12-29T06:06:00.000-08:00

I will start a Watchlist post everyday.This Watchlist will contain stocks that will be likely to go down.I already made a back-test and it show that 62.5% of these picks showed a negative gain for one day. So, go SHORT with theses picks.The average gain for winners are pretty the same than average loss for losers and is about 6%.Potential day trade for today:AMIENB:- Short theses stocks, don’t go

70% winners and an annual gain of 850%, but...

2005-12-28T06:24:00.000-08:00

I developed two years ago a simple trading system that showed great results in back-test.This trading system showed 70% winners and an annual gain of 850%.I was very happy and was thinking i found the ultimate system.Everything was correct and i double checked everything, but when i traded this system, it was clear for me that i the system cannot be traded :(So first let me explain rules of this

Market sentiment is bullish but...

2005-12-28T05:35:00.000-08:00

I was looking for articles and newsletters talking about these days short term market sentiments and i found that about 90% of them are bullish.Even the survey about Investors optimism is on the rise.Does that means that the market will rise in the next months ?Probably not.I don't know how the market is going to do in next weeks, but i know that if a majority of people are bullish then the

Stock Picking (Part 1)

2005-12-27T13:31:00.000-08:00

As a trader who want to invest in the stock market, you have to choose between more than 8000 stock.It's not an easy task and you should use a stock picking method to filter all these stocks.There is three basic methods of picking stocks.- Technical- Fundamental using Quantitative Analysis- Fundamental using Qualitative analysisYou can of course mix these methods to create your stock picking

Portfolio SC1 Update

2005-12-27T06:39:00.000-08:00

Today, i bought BTUI as i must have 3 positions in my trading system, and last week i had only 2 positions.I get 140 shares of BTUI at 12.75 (commission included).For the last week, my portfolio didn't do well, current return is 12.03% since 4 November 2005and portfolio value is 11203$, its was 11 387$ last week.Now, portfolio is fully invested with these stocks :CFKDXPEBTUI

Big advantage over others day traders

2005-12-26T14:22:00.000-08:00

For those who are day trader or swing trader, i have a great site that provide a paid software that can give you a big advantage over other traders.In addition to the position trader as i am, i also day trade since a long time using this tool.Trade-Ideas the name of this software, provide a real time scanner.It scan the market in real time and provide alerts for differents patterns.Here is some

Day preceding the holiday

2005-12-26T07:46:00.000-08:00

Some interesting things i found on the net, i don't remember where.Its about what happen the day preceding the holiday, it is maybe more interesting for day trader.This is what i found :Good Friday 60.9Memorial Day 74.1Independence Day 76.7Labor Day 81.2Thanksgiving Day 58.8Christmas 72.4New

Tight trailing stop can make you loose

2005-12-23T06:27:00.000-08:00

I made a simple trading system that use the following rules :Number of position : 10Commission: 0.2%Buy and sell at the open on next dayBuy rules :- Close>1- Average daily volume > 100 000$- Close>90 day moving averageSell rules :- Close<90 day moving averageWithout any stop loss or trailing stopI back-tested it from 17/04/2000 to 17/12/2005.Here are results :Annual return: 18.49%Number of trades

Reduce Your Drawdown

2005-12-22T02:58:00.000-08:00

Drawdown is the enemy of all investors. Drawdown can reduce some or all your gains and even make you loose money.The worse thing i experienced as a position trader is when it take you some months to make for example 30% gain, then in one week or two a big drop happen in your positions and you loose all theses gains.Traders or investors that are afraid of drawndown like me can use some techniques

Fundamental Ratios

2005-12-21T06:43:00.000-08:00

Fundamental analysis has two aspects.One is qualitative and the other is quantitative.Quantitative analysis, include ratio analysis.Ratios are calculated based on different numbers from the balance sheet, incomestatement, cash flow statement, stock quotes...There are many ratios available, the most know are probably PER (Price earning ratio) , PEG , Price to book, Price to cash flow.How we

Be aware of technical indicators

2005-12-20T06:54:00.000-08:00

Be aware, when you found a web site that want to sell you or show you the benefit of any indicator.First of all, you know that there is hundreds or even thousands of theses kind of indicators in the market.Each one use its a proper formula and its goal is to provide you with buy or sell signals.Everybody can have its own interpretation of the indicator he use.Generally, indicators tell you to buy

Portfolio SC1 Update

2005-12-19T07:52:00.000-08:00

I sell PWEI shares for an average price of 21$, commission included.Current portfolio value is 11 387$.CFK seems to do well today, as now its up 5.59% , while DXPE is down and last price is 18.26 or -3.54%.PWEI was sold because it dropped alot last week.Currently i have only 2 positions in my portfolio.

Trading System (Undervalued Stock)

2005-12-16T04:58:00.000-08:00

Ideas :Buy stock that are undervalued and hold them until they don't meet our criteria.I use Price to book ratio as indicator of undervalued stock.Buy Rules :Daily volume > 100 000 $MktCap > 400MPrice to Book <>=1If for any reason the price to book of a stock become not available, we sell the stock.Period of back-testing :From 6 January 2003 to 5 December 05, about 3 years.Results :Starting cash

Is short selling easy ?

2005-12-15T05:37:00.000-08:00

Short selling is not used by many traders; instead they prefer to go long, maybe because they know that they have the long term market trend with them.Some years ago, I tried to find a good trading system using short selling.I had a long one and then in addition with a short one, I was thinking that it will be great.When the market will goes up, my long portfolio will outperform the short one and

Profitable Trading System

2005-12-14T02:10:00.000-08:00

After you have found a profitable trading system that you already back-tested, how can you be sure that this system will produce the same gains in future.Nobody can predict the future, your system can easily make losses in next years or can be no tradable.There are some tests you must do before accepting a trading system, these tests swill show the robustness of your system and when passing these

DXPE GO UP

2005-12-13T05:44:00.000-08:00

After a big decline in october where market index goes down too, DXPE seems to do well now.I bought DXPE 22 day ago in my trading system and it performed 37.7%.Yesterday it moved more than 10%.The others two stocks that i held are CFK and PWEI.CFK was bought 36 day ago and returned 33.4% until now.PWEI was bought 15 day ago and returned 46.4% until now.Some others infos about this trading system

Want to know how stock performed depending on PER ?

2005-12-12T02:31:00.000-08:00

Everybody know what is PER.Price earning ratio is the stock value divided by its earning per share.Imagine a stock x has an earning of 200 millions dollars and it has 200 millions shares.Its earning per share will be 1$.Lets say its share price is 10$, then this stock has a PER ratio equal to 10.What does that means ?Generaly, investor say that a small PER means that a stock is undervalued and a

Trading System 1

2005-12-12T01:58:00.000-08:00

These are stocks that i am holding in my portfolio1.PWEICFKDXPEHOMThis portfolio use a trading system that i created one year ago.It use fundamental and technical criterias for picking stocks.The average holding period is about 50 day and i always hold no more than 4 stocks.This trading system show really nice backtesting results, and i am using real money in this portfolio since 11/04/2005.Since

Welcome

2005-12-12T01:52:00.000-08:00

This is my first post, excuse my english if its not very well.My name is azouz and i am from france, i trade stocks since now many years and specialized in backtesting strategies.I have some trading systems that are doing very well.I created this blog to share with you these trading strategies picks and will provide you alsosome tutorials and some very interesting backtesting results.