More Trading Strategies

Exerpts from The Strategic Electronic Day Trader by Robert Deel

Optimum Maximum Numbers
- Optimum Number of Day Trades a Day -> 3 to 5
- Optimum Number of Swing Trades a Week -> 3 to 5
- CHOOSE THE BEST!

Step 1: Market Trend Quantifier
- Calculate score for the Trend of the Market

- Indicator Good Bad Neutral
- Trendlines +2, -2, 0
- Exponential Moving Average 20,50,150 +1, -1, 0
- Money Flow (14) +1, -1, 0
- RSI (14) +1, -1, 0
- TRIX (14) +1, -1, 0
- Support and resistence area +1, -1, 0
- Interest Rates +1, -1, 0

Step 2: Screen Stocks
1. stocks with 5% increase in price + 30% increase in volume
2. stocks broken above 12-day exponential moving average
3. stocks with buy signal from MACD
4. stocks close just below 20-day Moving Average (may rebound)

(for the above criterias, just one fulfill will do, not all)

Open chart for a quick look. Many times that is all you have to do to eliminate it.

Step 3: Reward-to-Risk Ratio
For stocks that left over, draw trendlines and support and resistance on one year daily price chart. Look for stocks with Reward-to-Risk Ratio of 2.5 or better. If lesser, eliminate the stock at once!

Step 4: Using the Trading Trend Quantifier
- Indicator Good Bad Neutral
- Moving Average 12,20,50 +1, -1, 0
- MACD +1, -1, 0
- RSI (14) +1, -1, 0
- Rate of Change +1, -1, 0
- Bollinger Bands +1, -1, 0
- Williams %R +1, -1, 0

Step 5: Trade!
- Choose the top 3 with the most score to trade the next day!


The Trading Basket
- Build a basket of 30 stocks, consisting of the top 3 stocks from 10 different sectors
- Make use of Sector Rotation

Time Cycle - Most Bullish and Bearish Time of the Year, Month, Week, Day
- Nov, Dec, Jan -> Bullish
- Sep, Oct, Feb, Jun -> Bearish

-First 3 day and last 4 days of month -> Bullish

- Mon, Wed, Fri -> Bullish

- 9.30 to 11.00 AM and 2.30 to 4.00 PM -> Bullish
- Last 45 min -> will either reverse or continue trading in the direction of the previous hours

.