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100% Mechanical
Stock Trading System
I
studied and used a fundamental stock selection method developed by
Nicholas Darvas in the 1960's, revealed in the 70's and popularized
and enhanced by a well known financial newspaper in the 80's.
One of the things I liked most was a simple method of
measuring stock signal performance which I thought appropriately
made a nice fit with my own technical analysis.
The original
concept which always included the most profitable stock signals with
the lowest risk/reward, it left me with usually too many stocks,
(sometimes 200 or more), to choose from and many times getting
myself into situations where I had to dump the stock shortly after
takeoff because of the recommended stop-loss.
Even as a
technician I found it no easy task to search for the subjective
stock chart patterns.
If you
are going to invest mechanically and get the emotion out, you have
to be absolute on your rules and fixed percentage exits, while great
for higher priced issues, were devastating on lower stocks because
those kinds of fluctuations can and do occur in a single day.
The other problem I had was that following his logic I would
get into an issue reasonably later in the game after the stock had
made a substantial part of its move.
Now, from prior
teachings we know that this is no problem because stocks that go
much higher will always pass through the 80% Relative Strength line
on their way to doubling again or more. That too is true, but with
so many picks odds are you aren't going to be riding those horses
when you get mounted.
I had
been writing my own stock trading analysis and trading programs for
S&P,(and just about every other market you can think of), for my
own trading for almost 15 years and intuitively I knew that what
Darvas was doing was sound, but it was difficult for us "normal",
(3K to 150K) investors to administer without getting churned to
death. I had worked it with option - able higher priced stocks
successfully, but that also is not a game for the usual conservative
investor. You really have to know what your are doing or you ARE
going to get burned fast.
Being
a reasonably intelligent guy I figured I must be able to beat 90% of
the other folks out there...and I did. Trouble is, it became like a
full time job for me and it wasn't fun anymore.
I took
these principles, did some modification to the selection criteria in
allowing for a lower Relative Strength reading which got you closer
to the takeoff point and then developed a purely mechanical system
which allowed me to use the newspaper or the Stock Tables stock
screen website at stocktables.com, to "fast scan once a
week in ten minutes and only come up with three to five excellent
choices which automatically met the majority of the stock selection
criteria which would be 80% winners.
I then developed a
purely mechanical method for stop loss exits which would allow me to
have my protections in place so I could get the risk/reward ratio up
over 8 to 1 and still work with lower priced stocks which have more
opportunity for doubling and and takeovers.
The result was a
stock trading system system I have traded for myself for four years
and which is explained in excruciating verbosity below.
We
will
be happy to answer any specific questions you have about the system
and its performance and there are new users on line who have
the system and will tell you it delivers what it
promises.
As in years past,
we have been doing very well with our
stock trades this year.
Each evening we post any
new entry or exit signals.
Some
recent trades as of 11/17/09 are listed
below:
|
Stock |
FFIV |
|
Stock |
STAR |
|
Stock |
CERN |
|
Stock |
DDUP |
|
Stock |
+7.5% |
|
Stock |
+22.7% |
|
Stock |
+12.3% |
|
Stock |
+28% |
|
Option |
+25% |
|
Option |
+73% |
|
Option |
+40.9% |
|
Option |
+198% |
|
Duration |
4 weeks |
|
Duration
|
14 Days |
|
Duration
|
31 Days |
|
Duration
|
15 Days |
The above stock signal
trades are updated as of 11/17/2009
Sorry for all the reading, but there's a
lot to say. Also on our website, we also offer daily stock rankings on
10,000 companies including RS, EPS, VOL%, Charts, stock picks,
stock option signals and more!
Thanks for the inquiry and have fun
investing!
W. Henry Ford
Try It Risk Free for
just $49.50 and our 100% Money Back Guarantee:
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