Technical analysis system buy only

[starlight]

This system isn't mine, but the owner ( Raider ) says its good for 67% hits on the ASX.
Can it be improved? The software is Insight Trader but any metastock type program can be adapted. I havent shown the code, just the wording.
Here is what he showed us the other day without the code.

Volume greater than 300,000

Shares from .01 to $1.00

Opening price greater than day before

Closing price greater than open

Low price of day is greater than day before

Volume is greater than day before

Money flow index for last 8 days is greater than MFI of 8 days minus 1 day


Now what other indicator/s can we throw in there to get us a better result?
I will post the results of your scan, providing not too many.

 

[tech/a]

Hits.

Whats "Hits" mean.
As there are no exit details it cant mean profitable trades.

 

[elbee]

tech/a is right.

What is described is a "setup" for a system - and many would argue the setup is relatively unimportant.

Position sizing, exit details and entry rules (when and at what price) are not given.

With the right position sizing, entry and exit rules this system may be profitable, then again it may not.

In my experience throwing extra indicators at a setup does not improve a system. Usually the most effective setups are ridiculously simple.

 

[starlight]

I could have reworded that better, hits I meant the result from the scan, therefore 67% of the scan of the stocks from $0.001 cent to $1.00 are profitable. Yes entry and exits are quite important,one may be unfortunate to select the remaining 33% that are not going to increase on the day. This system is not intended for investing, just for a snatch and grab for quick profits, needless to say if it doesnt show up the following scan sell it.
I believe it has merit, and was wondering if the MFI could be replaced with a moving average or combined with another indicator/s etc.
This was just a simple idea, I know there is no holy grail, but surly someone may just come up with another indicator to add that may take it to say 75%.
Like I said, am just playing with it at the moment as I enjoy technical analysis, but out there there is always someone smarter who just might say..hey why not add a 22ma day to that..if you know what I mean.

 

[Boggo]

Using Metastock and the info you provided above.

Results from 11/03/08 eod data are...

AXI CEG IGC MPO OLY RNY

Mike

 

[tech/a]

Thanks Boggo

So to my next question.
What is profitable?
Above the buy price in an hr,a day,3 days,a week.
To lock in profits when do you know to sell?

Re adding an indicator.
A your looking at a short term entry signal and expect a long term lagging indicator to improve it?

With all due respect if your getting a 67% win rate you dont have to improve it.
You just have to know how to position size it and increase trade frequency or leverage if its that good.

 

[Boggo]

starlight, some very valid questions from tech/a that need consideration.

What does "Raider" use for Stoploss, Risk vs Reward and Exit factors/calcs ?

Todays list...

 

[tech/a]

Just a little aside here.

I'm fascinated by the amazing R/R available in the pennies.
While many think trading the pennies is crazy I personally think it CAN be very profitable to those who are very good at it.

Its a totally different mindset.

 

[starlight]

I never asked him Boggo, It was only to scan the asx, you would have to define your own exit and entry.