Friday, September 18, 2009

Trade Ideas on Your Kindle

Trade-Ideas Mobile works on the Kindle.

Add a bookmark for Make sure to turn on "Advanced Mode" in your Kindle browser to get the formatting right.
Of course, we're always pushing the limits. You can get streaming stock alerts on the Kindle. But Trade-Ideas works best if you request historical stock data for your strategy - a leisurely way to read and review the tape. Then you can scroll through the alerts one page at a time, just like an ebook. That will minimize the amount of flickering present in the real-time mode.

Trade-Ideas mobile gives you the same access to realtime stock market information on the Kindle as it does on the Blackberry and other mobile phones. But TI Mobile can take advantage of the Kindle's bigger screen.

If you were having trouble logging in, please try again. Our apologies. There's a bug in the Kindle's experimental web browser.

It doesn't handle cookies right. We have fixed Trade-Ideas Mobile to work around that bug. If any Amazon programmers are reading this, let us know, and we'll give you more details.

Tuesday, September 08, 2009

Steenbarger Inspired Strategy: Trade the Transitions

Great strategies align themselves with vetted and observable themes in the market.

Strategy comes from taking a stand based on what you perceive are demonstrative behaviors in the recent market and then submitting that position to the market's cross examination - you'll come out smelling like a rose or its fertilizer. The nice thing with The OddsMaker backtesting tool, is that you'll know this without risking a penny of capital.

Don't know which behaviors to identify? What cause to fight for? Adopt someone else's opinion - preferably someone you may regard as a mentor or at least a trusted interpreter of the market's various and many signals.

I haven't had an original thought since I named our second daughter 2 years ago. So when I want some heavy theme action, I look to another doctor who's good at midwife-ing ideas through delivery and into the world: Brett Steenbarger.

Yesterday the good doctor produced a beauty.
Theme: "buying strength and selling weakness has led to consistent, short-term underperformance."

  1. Trigger 1 occurs when stocks close above or below a defined distance from their moving averages. This captures relative strength or weakness.
  2. Trigger 2 occurs when stocks lose upside or downside momentum after the first signal has occurred and after stocks have continued their move to new price highs or lows. This captures a loss of momentum to the upside or downside.
  3. Trigger 3 is an execution signal [sic] that looks for buying that makes a lower high (if one is going short) or selling that makes a higher low (if one is going long).
Trading Plan:
  1. The stop loss occurs when Trigger 3 is violated; i.e., stocks make a higher high after having seemed to have topped out.
  2. The average holding period for the trades is 2-3 days.

Ok. So here is the strategy I developed from the description above. Subscribers will see this in real time, everyone will see the delayed 20 minute data.

Type or copy/paste this shortened string directly into a browser then copy/paste the full length link into Trade-Ideas PRO using the “Collaborate” feature (right-click in any strategy window): (case sensitive)

The strategy uses 3 alert triggers subject to 7 filters:

25% pullback from lows 25% Pullbacks from Lows
Positive VWAP Divergence Positive VWAP Divergence
10 minute bullish engulfing 10 minute Bullish Engulfing

Min Price=5 (Dollars) Min Price = 5 (Dollars)
Min Daily Volume=500,000 (Shares / Day) Min Daily Volume = 500,000 (shares/day)
Min Above Low=0.1 ($) Min Above Low = $0.10
Min Position in Previous Day's Range=50 (%) Min Position in Previous Day's Range = 50% (Percentile)
Min Position in 5 Day Range=40 (%) Min Position in 5 Day Range = 40% (Percentile)
Max Position in 10 Day Range=25 (%) Max Position in 10 Day Range = 25% (Percentile)
Max Up from 20 Day SMA=-5 (Bars) Max Up from 20 Day SMA = -5 (Volatility Bars)
Click on the icons to see a definition of each of these indicators.

Tomorrow I will post the trading instructions I used to produce these results:
86 / 198 = 43.43% up $0.01 at close after 2 days; Average winner = $0.777, Average loser = $-0.3204, Net winnings = $31.90, Best = $3.17, Worst = $-2.89; Casino Factor = 99.86%
Daily summary:
8/14 : 0.7400/14
8/17 : 1.3300/3
8/18 : 3.6500/33
8/19 : 13.6800/33
8/20 : 7.5700/25
8/21 : 4.3200/13
8/24 : 0.7200/9
8/25 : 0.3100/7
8/26 : 2.7500/14
8/27 : 0.6800/7
8/28 : 2.0300/11
8/31 : 1.1100/7
9/01 : 2.6400/7
9/02 : 0.6900/5
9/03 : 5.0000/10

Understand these backtest results from The OddsMaker in more detail by reading the User’s Manual:

Wednesday, September 02, 2009

Trade-Ideas Yearbook Picture: Our 1st Homepage

Some fun from the Twitter stream.

Always interesting Howard Lindzon posted this tonight,
howardlindzonhow 20 popular websites loooked like when they launched ...always be evolving...
Very interesting to see great sites at their beginnings - it's like looking at yearbook pictures from those of us painfully transitioning through adolescence and puberty. I could go on . . .

But this picture is priceless and worth a 1000 words - mostly full of profanity.

We've come a long way, baby . . .