Regarding the SPY system, I've asked my programmer to create a
couple new tools for me, hopefully he can get them before Monday so
that I can do some scans.
Basically one thing that I've always meant to test on the SPY
system is the speed of price movement or slope and what happens
when you get extreme short term moves: For example I
would like to be able to back test the SPY system for times when
the SPY moved a certain large percentage in X number of days, or
the short term slope became very steep i.e. I would like to see
what happened after these events and the effects of taking some
profits or all profits etc.
Of course currently the 'scale out' version that I posted helps
with this already because the system would have already scaled out
of 50% of the position and locked in some nice profits so if a hard
pullback occurred, so what, profits have been locked in.
However with the new scans, I would also like to find a hard
data for a fast slope change or a high % move in X number of days
that tell us if you see this slope change over X number of days,
exit or take some profits.
Something scientific with hard numbers like like if we see a X
percent gain or greater in 4 days take some profits. This is
the ONLY way to do this and made additions to the system, NOT
emotional ones just because you think the market is overbought.
You have to approach this scientifically. Remember, as
most of you know, I did not go to college for finance, I went to
college and got a degree in Chemistry and Mathematics and I worked
in that field for 10 years in Research and Development at Monsanto.
My scientific back ground helps me approach this stuff
scientifically vs emotionally.
If the programmer gets me what I need in time, I'll let you know
what I find.
I worked in the phosphate salts division for a few years in the
research department in product and development.
Some of our products went into toothpaste (Colgate) as the
calcium/phoshate, and I would actually make toothpaste from scratch
in the laboratory and do various aging tests, etc. I would
even use my own toothpaste and take it home LOL.
After that I worked in one of their production plants as the
'Head Chemist' running quality control
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Regarding the SPY system, I've
Posted by matt on 2nd of Jul 2011 at 11:30 pm
Regarding the SPY system, I've asked my programmer to create a couple new tools for me, hopefully he can get them before Monday so that I can do some scans.
Basically one thing that I've always meant to test on the SPY system is the speed of price movement or slope and what happens when you get extreme short term moves: For example I would like to be able to back test the SPY system for times when the SPY moved a certain large percentage in X number of days, or the short term slope became very steep i.e. I would like to see what happened after these events and the effects of taking some profits or all profits etc.
Of course currently the 'scale out' version that I posted helps with this already because the system would have already scaled out of 50% of the position and locked in some nice profits so if a hard pullback occurred, so what, profits have been locked in.
However with the new scans, I would also like to find a hard data for a fast slope change or a high % move in X number of days that tell us if you see this slope change over X number of days, exit or take some profits.
Something scientific with hard numbers like like if we see a X percent gain or greater in 4 days take some profits. This is the ONLY way to do this and made additions to the system, NOT emotional ones just because you think the market is overbought. You have to approach this scientifically. Remember, as most of you know, I did not go to college for finance, I went to college and got a degree in Chemistry and Mathematics and I worked in that field for 10 years in Research and Development at Monsanto. My scientific back ground helps me approach this stuff scientifically vs emotionally.
If the programmer gets me what I need in time, I'll let you know what I find.
Cool stuff as always Matt,
Posted by aharon on 4th of Jul 2011 at 10:59 pm
Cool stuff as always Matt, if you don't mind me asking what did you do for Monsanto?
I worked in the phosphate
Posted by matt on 5th of Jul 2011 at 10:44 am
I worked in the phosphate salts division for a few years in the research department in product and development.
Some of our products went into toothpaste (Colgate) as the calcium/phoshate, and I would actually make toothpaste from scratch in the laboratory and do various aging tests, etc. I would even use my own toothpaste and take it home LOL.
After that I worked in one of their production plants as the 'Head Chemist' running quality control