A New Potential Day Trading Strategy, Part 2

Last Updated on May 20, 2022 by Quantified Trading

Some days ago I wrote about a new day trading strategy I have implemented. This morning I had a second look at it and decided to test it using some of the stocks I did not pick for my portfolio list. I simply picked 31 random stocks out of the 365 stocks remaining (I had a list of 465 stocks, of which I picked the best 100 stocks for trading).

Using just those 31 randomly picked stocks, I get the following accumulated profits from January 2010 until July 2012:

 

This is the monthly numbers (from January 2010 to July 2012):

 

As you can see from the chart the numbers are more erratic than the 100 best stocks. Of course, this could just as well be because I have picked just 31 stocks and my trading portfolio consists of 100 stocks (this is a profit chart, not return on equity). However, this is just an indication, but in my opinion, this is quite good results considering they are picked randomly. The stocks gave better results than I expected.

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  • Hi,

    Nice strategy but you are testing it with Yahoo data.
    Yahoo data is total mess, including not good open calculations.
    I have got almost reversal resuls testing on Kinetick(same as DTN) in Ninja and Barchart in Multicharts.

    Try to test it on Barchart and results have to be totally different:)

    Overall, your idea is brilliant.

    Alex

    • Well, I totally disagree. I trade this live and result is not far from testing. Besides, I haven’t revealed what the strategy is about. I don’t use the open price either ­čÖé