Setting up a watchlist for daytrading

[Gringotts Bank]

I want to concentrate on stocks between 1-10c.

I don't really want a strong liquidity filter because I want to be able to see stocks that shoot off out of the blue, like say ZRL today. Many day trader stocks are one day wonders, as this will be, so i don't want to exclude them because that's where the action is.

Any suggestions?

Fundamental filters perhaps?
List of most posted stocks from HC?

 

[tminus]

Using Amibroker you can filter stocks based on closing price and then you can add another filter for stock that has changed in price. But you will need subscription to a good data provider.

 

[Punta]

I don't really want a strong liquidity filter because I want to be able to see stocks that shoot off out of the blue, like say ZRL today.

So you want to look at stocks that occasionally have large volume and price fluctuations?

You could look for volume PDFs that have large skew/kurtosis?? Or just where e.g. the 99th percentile of the fractional change is way larger than the median?

 

[Punta]

So you want to look at stocks that occasionally have large volume and price fluctuations?

You could look for volume PDFs that have large skew/kurtosis?? Or just where e.g. the 99th percentile of the fractional change is way larger than the median?

To be honest though, I doubt any kind of technical analysis will be able to see those things coming. That's the kind of thing where being an insider helps...

 

[Wysiwyg]

I want to concentrate on stocks between 1-10c.

I don't really want a strong liquidity filter because I want to be able to see stocks that shoot off out of the blue, like say ZRL today. Many day trader stocks are one day wonders, as this will be, so i don't want to exclude them because that's where the action is.

Any suggestions?

As you pointed out, stocks that fly on the day is where the action is. You need real time data (all ASX stocks) with a market scan and alert function to be on the action when it happens. Market-scan by Paritech perhaps.

Using Amibroker you can filter stocks based on closing price and then you can add another filter for stock that has changed in price. But you will need subscription to a good data provider.

Amibroker user and I cannot find a real time data feed to Amibroker for all ASX stocks.

 

[Wysiwyg]

Using Amibroker you can filter stocks based on closing price and then you can add another filter for stock that has changed in price. But you will need subscription to a good data provider.

Since Interactive Brokers allows only 200 stocks live feed to Amibroker, a before market scan for stocks 1 to 10 cents would give a list which could be whittled to 200 and then that watchlist be the live feed with a % price or volume change scan every 5 seconds.

Before market scan is .... Buy = C <= 0.10 & C >= 0.01;

 

[pixel]

I want to concentrate on stocks between 1-10c.

I don't really want a strong liquidity filter because I want to be able to see stocks that shoot off out of the blue, like say ZRL today. Many day trader stocks are one day wonders, as this will be, so i don't want to exclude them because that's where the action is.

Any suggestions?

Fundamental filters perhaps?
List of most posted stocks from HC?

I have been using a script based on the observation "Volume Precedes Price", meaning that quite often, somebody "guesses" something, buys a huge stake without affecting the price, and then, after a few days or weeks: KABOOM! The price explodes upwards.

For example, take a long-term Moving Average of the volume, limit the volume deviation to, say, twice the average, and have it trigger a spike of, say, ten times or more of said average.
Apply a similar limiting rule to the price, except you don't want ANY price breakout in the past.
Then you set a live alert for a price breakout above the higher of last day's Close and x% above long-term average price.

It may not capture EVERY potential daytrade, but you could never watch (nor trade) them all anyway.

Paritech's Marketscan would certainly let you put something suitable together. As it happens, I've written my scan for the Market Analyser by MDS Financial.

By way of examples: today's runs suggested DML and BNO. On the attached chart, a yellow V indicates the days when the first condition was met. (I let it show over a number of days, so I don't have to search for the volume spikes every day.)
An entry on the 30th November, when the yellow EMA was broken, would net at least 10% profit.





QUB referred in late October to the spike on September 16th, then set the price alert for a break of $1.36, which happened in late November.



Note: I'm only showing the principle; how you implement it is up to you.

 

[Gringotts Bank]

Thanks everyone.

Been trying to get a trial of Pulse/Marketscan. Called them and they said fine then nothing happened. They didn't send through a password. What sort of filters do they have - seems like quite a lot?

What I've been playing with is an AB filter that will find stocks that have had at least 1 day in the last 50 days where the H-L is >10% and turnover >1mill, but it's still way too restrictive.

pixel - where's the yellow V? Can you explain furhter pls? EDIT - found the V!
punta - Can you give some examples pls? What's a volume PDF?

 

[Boggo]

I have been using a script based on the observation "Volume Precedes Price", meaning that quite often, somebody "guesses" something, buys a huge stake without affecting the price, and then, after a few days or weeks: KABOOM! The price explodes upwards.

I am a fan of this theory, when I glance at a chart that has popped up in my scan I look for what I consider to be a favourable and consistent change in volume behaviour.

In the chart (CDU) below there are a few green arrows where it appeared in my scan results but if you look at the volume behaviour of those compared with the area I have highlighted you will see a difference (I do anyway !).
In the case of this stock the volume behaviour came before some significant news items.

(click to expand)