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What kind of trading program?

Discussion in 'BlackHat Lounge' started by TehEpidemick, May 1, 2014.

  1. TehEpidemick

    TehEpidemick BANNED BANNED

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    What kind of stock trading program would you think would be best. Basically what do you think would be the most likely to produce gains.I would think a that looks at financials and current P/E and makes decisions based on that. Basically a program that looks for undervalued stocks. Do you think it would be possible to look for stocks that are... pattern based and trading within certain ranges and looking for the low side of the range to buy/sell.
     
  2. codexehow

    codexehow Power Member

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    The human brain and experience is the only reliable "program."

    Sorry, I know that's not the answer you want to hear. Software can't trade for you profitably over time because markets change.

    You can have success with a basic program that trades off of moving average crossover with a filter, but nothing is guaranteed. It might work for a month, and then you might lose your entire investment.

    Another thing: a program can't take fundamental information into account. It can see that a stock dipped 50 points in an hour, but it won't know why. The why is much, much more important than the dip itself. This, btw, is why all Forex bots?with the possible exception of Expert Advisers that are supervised by an experienced trader?are crap. Forex is driven by fundamental data.

    Again, the human brain and experience is the way to go.
     
    Last edited: May 1, 2014
  3. The Scarlet Pimp

    The Scarlet Pimp Senior Member

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  4. bullsbears

    bullsbears Regular Member

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    Programs / MT4 EA's are nothing but bots which gives signals based on what is fed into them by humans. For short term gains in market i follow Heiken Ashi Trading System and MACD on Daily Time Frame and profit good amount after holding for 3-4 days.

    If you are a fundamental trader then you should be an Investor and not trader with a view to hold the stock for years.

    I am a Technical Trader and my 70% funds are into positional trading as discussed above and rest 30% for Intraday Trades.

    So first of all decide what's your goal and become a Fundamental / Technical trader as per your Risk Apetite.

    Suggested Readings for you:

    Follow Tony's EW Blog HERE

    Shanky's Daily Blog HERE

    Heiken Ashi DOW system HERE

    All the above resources will help you become a good trader following the daily commentary.
     
    Last edited: May 1, 2014