Small account challenge, day 16
I’m holding a swing trade today from yesterday that I’ll sell tomorrow, so no trades to post today.
But I am working on this new strategy pretty hard and I’ve been working on backtesting it, and I wanted to share with you all the results so if I fail miserably there is at least documentation that I wasn’t jumping into this blind like a crazy person!
The strategy is to buy at open, and sell when you’re satisfied with the gains. Usually within 15 minutes. These stocks have had some sort of news that drove the stock down in after-hours trading, but typically the push down isn’t warranted so it bounces really fast. might still be a red day, but I just want to catch the bottom coming out of premarket and sell as close to the top of the bounce as possible. Here are some of the trades from the backtest:
$FRPT bottom $17.55 in at 9:32am, top $19.00 out at 9:44am. 8.26% in 12 minutes.
$ASNA bottom $2.10 in at 9:30am, top $2.36 out at 9:43am. 12.38% in 13 minutes.
$GLYC bottom $17.25 in at 9:30am, top $19.10 out at 11:25am. 10.72% in 2 hours, or 8.06% in the first 14 minutes.
$OPK bottom $2.66 in at 9:30am, top $3.40 out at 3:40pm. 27.63% holding throughout the market day, 6.02% in the first 15 minutes.
$BW bottom $4.32 in at 9:31am, top $6.04 out at 2:10pm. 40% in 4.5 hours, 20% in the first 5 minutes.
$CVNA bottom $16.02 in at 9:33am, top $18.37 out at 10:41am. 14.67% in 1 hour 8 minutes, 10.49% in 9 minutes.
$TRXC bottom $1.66 in at 9:31am, top $1.92 out at 9:44am. 15.66% in 14 minutes.
Now, these are perfect trades. You will never get in perfectly at the bottom and sell perfectly at the top. But there is a pattern you can clearly see. Premarket drives the price way down, buy at open. Sell the stock within the first 15 minutes and you’ve caught a lot if not all of the movement. Even if you only catch half of the movement in the first fifteen minutes, they are winners. My goal is 3% per day and so far this strategy looks like it will get me there. Also note, I am not picking the best out of my list each day. These are ALL the picks I have monitored. How’s that for winning?
And all of these picks come out of TC2000. You don’t need to buy an expensive scanner like Trade Ideas, you don’t need to pay for someone’s expensive chat. The only reason I’m promoting their tool right now is that it has become the only tool I use for charting, scanning, and intraday watching my stocks. And it’s not expensive at all, any trader starting out can sign up for their gold package with real time data and not break the bank. That and the scanner is why I downloaded it to begin with (it’s free to use forever if you want). But like any tool that does this much, you need to learn how to use it. That’s why I’ll be attending their free live training in Durham NC this weekend.
Let me know if you’re going to their live training as well! I would love to meet up!
