Tuesday, August 7, 2007

Find a Stock that moves 1500%

Instructions:

  1. Use any of your favorite stock investing software. This example assumes excel based system.
  2. Calculate the lowest close for a stock in last 260 days. If a stock has less than 260 days data calculate lowest close for those many days.
  3. Calculate percent change from lowest close and select stocks which had 100% plus growth
  4. Find the highest price in the 100% move and only take stocks which are within 25% of that highest price.
  5. So this is your trading universe of stock which have made significant move of 100% or more and are as of today within 25% of the high during the move
  6. Use a significant one day move scan on these stocks. e.g. say a 5% move ( 100 * (C - C1) / C1) >= 5 AND V >= 1000 AND V > V1)
  7. Buy next day with 1% risk and stop below the low of previous two days bar
  8. Trail with a stop
  9. If you get stopped buy again on next breakout
  10. Enjoy your profits
From StockBee

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