Dan-o
19 posts
msg #50907
- Ignore Dan-o |
4/6/2007 8:54:15 PM
Hello Fellow Fetchers,
I am in the process of developing an automated trading system which will trade stocks that I feel will be good long candidates for the next trading day. The system will (hopefully) hold for one day only and will have positions either stopped out with a stop-loss / trailing stop or sold at the market with a time stop. I would appreciate any input about trade management parameters, i.e., stop-loss, gain levels, and trailing stops that you may have. If anyone trades a similar system, or does it manually, what would you recommend? Global parameters for the entire system or customize according to stocks' s/r level, volatility, range, etc. Right now, I'm leaning towards global parameters, it would just be easier for me to implement. System will operate like this:
1. I determine long candidates
2. If long candidate increases 1% higher than opening price and open is 1% higher than previous close, buy when stock is 1.25% greater than open.
3. If long position is opened, set stop loss at (entry price)-(.50%*entry price).
4. If gain level of +1% on trade is achieved, set trailing stop of (day high) - (.50*day high).
5. Kick positions at 3:30 if still open.
I like simplicity. My screen is fairly simple and generates high probability set-ups. The stocks don't all move, but my long candidates usually don't head lower, so that will keep me out of dud trades. I'm not looking for filters, I can put together filters pretty easily. I'm just looking for input from Trading Warriors! Thanks for your help!
Dan-o
"' I dial it in and tune the station
They talk about the U.S. inflation
I understand just a little
No comprende, it's a riddle
I'm on a Mexican radio...'" ---Wall of Voodoo
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