Saturday, February 23, 2013

First Study

I really like reading studies that some blogs do. I figured if that's what I like there should be a few others that also enjoy it. With that said, here's my first crack at it.

Filtering out the low price/low volume stocks out over 80% of stocks advanced on Friday. On Thursday, only 21% advanced and on Wednesday only 11% advanced.

Our first study will look at trades for stocks that advanced less than 15% 2 days ago, less than 25% one day ago and greater than 80% today. If the conditions are met we buy at the close and sell X days later. Looking at results from 1980 - today, here's what we have when trading the S&P 500.

As we can see holding for 4 days is our best trade racking up over $40,000 on 17 trades in a 100k account. This means buying at the close on Friday and selling on the 28th should be a good trade.

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