CZR ? - Questions for my powerful, smart men
Currently working on small coding project. An algorithm that filters stocks from the TSX, TSX Ventures and CSE who’s price closes below the lower Bollinger band (80). I’ve been reading some of the work from Matt at Trader University and he calls it the rubber band stocks. Even though the purpose of this project is merely recreational, it got me thinking of a few questions I need answers to. Please feel free to comment and leave your thoughts. I like learning from the experienced day traders out there.
1) what time period should i use if i want to shorten the time i hold the stock? I find that with the 80 day bolllinger, if the stock closes below the lower band, It usually takes around 4 to 7 days for it to bounce back to the middle band. My goal is to reduce my holding period for a maximum of 3 days.
2) the goal of the algorithm is to filter stocks that are being oversold in order to have enough room for the price to bounce back at least 1% per trade. Is this an unrealistic goal? My reasoning behind it: get a 1% weekly return, which annualized is around 56% when compounded without much risk involved.
3) do the experienced day traders out there even follow a certain strategy? Or do you guys make your trades based on other research?? If you follow a strategy, may a please have the name to research more about it
4) do the experienced day traders place stop loss orders? I’ve noticed that the algorithms from the institutional investors pick up on those orders just to fill them up and trade the stock up again.
5) if you use stop loss orders, what’s the level of risk you put into every trade? Even if you don’t actually set up a stop loss order, what’s the level of risk you are comfortable with before deciding to exit the trade at a loss?
To my all my powerful and smart men reading this, please help this girl out with some answers. Please leave a comment or thought you think will help me :)
1) what time period should i use if i want to shorten the time i hold the stock? I find that with the 80 day bolllinger, if the stock closes below the lower band, It usually takes around 4 to 7 days for it to bounce back to the middle band. My goal is to reduce my holding period for a maximum of 3 days.
2) the goal of the algorithm is to filter stocks that are being oversold in order to have enough room for the price to bounce back at least 1% per trade. Is this an unrealistic goal? My reasoning behind it: get a 1% weekly return, which annualized is around 56% when compounded without much risk involved.
3) do the experienced day traders out there even follow a certain strategy? Or do you guys make your trades based on other research?? If you follow a strategy, may a please have the name to research more about it
4) do the experienced day traders place stop loss orders? I’ve noticed that the algorithms from the institutional investors pick up on those orders just to fill them up and trade the stock up again.
5) if you use stop loss orders, what’s the level of risk you put into every trade? Even if you don’t actually set up a stop loss order, what’s the level of risk you are comfortable with before deciding to exit the trade at a loss?
To my all my powerful and smart men reading this, please help this girl out with some answers. Please leave a comment or thought you think will help me :)