As usual when there are no suggestions from readers, I picked the top stock mentioned today on stocktwits. Today, it was Las Vegas Sands Corp. (NYSE: LVS). As most of you know, I calibrate the volume bars to the 30-day average volume. Since volume on LVS was so much higher than average today, we ended up with a lot of candles. I worried that the resulting signals would be too whippy, but it actually turned out ok.
(In real life I’d notice the extreme volume early in the day via tools such as trade-ideas and I’d adjust the volume bar settings. But, sadly, I know if I post an adjusted chart then the cynics will crawl out of the woodwork and claim that I’m being dishonest and manipulating the outcome. Such is life.)
Anyway, here are the charts… I added arrows to the chart to help you see where things line up with price action, but all of the entries were picked mechanically, as seen by the indicator on the first subgraph.
I think it looks pretty good! Yeah, not every trade here wins, especially in the morning, but it certainly looks like a profitable day to me!
I’d like to remind people that I’m not trying to come up with the best system ever, here… We could get complicated and say things like: trade 1/2 size when we’re on the wrong side of Alla’s Average, for example. But optimization is not the point. I laugh when I see unprofitable traders optimizing their systems. Get profitable, then get really profitable. I want people to see that you actually don’t have to work too hard to make a profitable system out of good indicators . Obviously I suggest you check out the ones I release through eotpro.
Hi Richard. I wanted to ask what all inspires the arrows to fire off. For instance, in Bill’s Arrows for EOT they had the futures and bonds tied to if an arrow would display.
Also I’m using Multicharts but would consider NT, if this system will be available in the future.
Hey and if you want a stock to play with, I like X, GS, and POT as volatile stocks. :)
All this stuff is in Ninja today, in fact. So, no need to wait if you are wanting to switch. Of course, MC can give you history on the bid/ask/volume histogram, whereas Ninja can only compute it in realtime.
The stock trades system is outlined in several posts in the series (just click on the simple-stock-system tag to see past posts). But basically: first everypush green/red bar + price relation to fast MA + volume pressure. And recently I also filter out the trades if EOT_TA is up. That’s why today you only get the initial short entry on the long drive down. If you adjust the indicator to disregard EOT_TA, then you see all the little second-chance entries on the way down.
I’ll pick one of those tomorrow, thanks!
Thank you Richard.