Trading Test Numero Uno

A while ago, I mentioned I was working on a tradable system for lower priced stocks, say below $10. I'd guess I'm about 80% of the way to having it complete. Below is a snapshot of what I call the summary sheet of the excel workbook. There's about 25 stocks shown (not including the dow, spx and emini). Some of you may recognize many of these stocks as they have gotten attention for various reasons on disccusion boards. I have decided to try a dry run of the system here just to see how it pans out, so I randomly picked 5 of the stocks (gss, vlnc, ftk, c and cnxt) and bought (or sold) a fictitious amount ($5,000) of each using last fridays closing price. Each was either a long or short position based on what the current signal is for that paricular stock, and this test therefore enters a trend possibly right in the middle of it, but so be it, you have to start somewhere....I ended up with 3 short positions and 2 long positions. The whole idea here is a method of trading the trends as much as possible using moving averages, either simple or exponential, tailored for each stock, as trigger points. More on this later on.

This was intended to be an end of the day piece of work so that signals are received in the evening and if a trade is indicated, it is made at opening price the following day. Sort of 'trading for the working class guy', or whatever. You get the picture.....its still a work in progress....lets see where it goes. For now, commissions and slippage is ignored.


The worksheet shown below is one of several in the excel workbook. This particular worksheet is for the stock symbol GSS. The stocks open, high, low, close and volume is brought into this worksheet by a series of macros, so that its done essentially automatically with the push of a button on the sheet shown above. As the information is brought in, it also plots that data on the chart on the right hand side and determines what the postion (buy or sell) should be for that stock on the following day. This is based upon the moving averages that were selected especially for that stocks characteristics. There is much other information on this sheet too detailed to get into right now....suffice it to say that this worksheet is the 'brains' behind the whole thing. If you have or know of a good candidate for the system let me know and maybe I can list it. Basically looking for trending or volatile stocks less than 10 bucks. I say maybe because I have no intention of turning this into pure labor...lol. One other thing of importance I guess....stops are not used...the idea is to get on the correct side of a trend (either up or down) and ride it as long as possible. And, of course, this is not trading advice...if you buy or sell based on this information you could go broke, your spouse could leave you and your house could burn down. So dont do it.

OH, AND, THIS IS EXPERIMENTAL. IF YOU DONT LIKE WHAT YOU SEE, DONT LOOK AT IT!