Thursday, May 15, 2008

My Active Trading Systems

I have done a lot of system testing over the last year. I use Wealth-Lab Pro as my testing platform. At this point I trade two systems which I have developed using ideas I have gained from trading books. I have even given these systems names!

My Active Trading Systems


Knish. This is a mean reversion system, that attempts to take weak, recently "oversold" stocks as measured by the 14 day RSI ( or relative strength index ) that have had a streak of one week's down closes, or the lowest low over a two week period and bets on a short term swing up. It takes profits via a profit target or after two up closes. It is looking to grind out small profits.



Beeks. This is also a mean reversion system; however, this system looks for stocks that are aggressively and efficiently trending higher, and that have had a pullback over the last three to four days, looking for that burst up shortly thereafter. This system is more volatile because it does not take a profit target and exits on two up closes, but is also looking to grind out lots of small profits over time.

I will write up summaries of the rules of these in later posts.

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