Diamond trading with Portfolio Boss
Corona Del Mar, CA |
No, I'm not talking about trading DIA… |
Keep in mind we use log charts, so the out-performance of buy and hold (blue) is significant.
Anyhoo…
I set it aside and kind of forgot about it. But after the metals crash on Friday, I took a peak. Boy did it sell the top perfectly!
How did it know?
Well, the code for this puppy was created automatically with our Genetic Programming in C code engine.
It randomly mixes mathematical formulas and logic together, and through evolution, the best strategies rise to the top.
Now I have to warn you…the code to this strategy is radically simple and may come as a shock. This is very common to those that think trading is some sort of complex, drawn-out formula…
Here's the buy signal:
var v0 = VARIANCES(p.AdjustedHigh, periods: 9);
var v1 = VARIANCES(p.AdjustedClose, periods: 9);
return v0 >= v1;
Yup, that's it.
VARIANCES simply looks at the average price over the last 9 days, and then measures the dispersion.
On a chart, if you see a lot of days where the close is much lower than the high of the day, it's likely a buy signal. So more of a mean reversion strategy.
The sell signal would be the opposite. A lot of higher closes that are near the highs.
I strongly believe part of why this works is because the stock is an ADR: American Depositary Receipt.
The main symbol trades on the London Exchange.
ADRs tend to have a lot of gap ups and downs in the morning. I believe that's why the VARIANCES pattern works so well.
I want you to also recall my work where I talked about the vast majority of all stock/crypto/metals returns being outside NYSE trading hours (9:30AM-4PM). Weird, right?
Ironically, that's yet another reason so many day traders aren't successful. It's like trying to swim against the current.
The lesson here is that are tons of hidden edges in the markets that can be found with machine learning.
Trade several of these edges at once, and watch your consistency soar.
We'll be releasing a brand new strategy pack designed to do exactly that (and more) with auto-trading.
That way you can stop living by the market's clock. Take a vacation with minimal check-in. Play a round of golf on your time. Go fishing.
You didn’t save up to retire only to spend your days watching markets.
That's why we spent an incredible amount of time programming in contingencies for everything we could think of.
It's easy to get 99% there, but there are edge cases like stock splits, symbol changes, orphaned orders, trading halts, power outages, late quotes, downed Internet, app crashes, etc…
…all of these must be carefully mapped out and accounted for. They are the computer's headaches, not yours.
And don't worry…you can also have the orders imported and then YOU hit the transmit button.
Citigroup said they reduced errors by 86% when they implemented automated entry for their trading desk.
And hey, even I've slept in and missed trading on time. Think of it as your 24/7 emergency backup employee even if you love examining every order with a microscope before you trade.
More details on Alpha Autopilot coming soon…
Trade smart,
Dan “Prince of Proof” Murphy
Government required disclaimer: The results listed herein are based on hypothetical trades. Plainly speaking, these trades were not actually executed. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under (or over) compensated for the impact, if any, of certain market factors such as lack of liquidity. You may have done better or worse than the results portrayed.
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