Today, we want to invite you be part of one of our stock market research projects.
With all the marketing letters you receive, the word
research might sound boring; however, progress can only be made by a sound research, analytics, synthesis, and conclusion.
For a long time, the following hypothesis was in my mind:
“Institutional investors reveal part of their trading
plan in the last hour of the trading day, where the NeverLossTrading signals
can guide us to a possible trade entry and exit at the 1-hour opening candle of
the next day.”
The challenge was to develop an algorithm to find those
stocks, which comply with last-hour institutional action. Having 42,000 stocks
traded in the US market only, shows that the complexity cannot be solved with
chart analysis.
Hence, I had to write a Google-like-program for filtering
stocks with one of the NLT-HF- or NLT Top-Line signals in the last hour of the
trading day and a solution was just found and installed.
Now, we are now running the reality test: Checking, if our hypothesis
holds-true. To do so, we run a daily review on the symbols reported by “The NLT
Last Hours Movers Report”. The sample of stocks we selected is 800 selected
stocks, which fulfill set NeverLossTrading conditions: Minimum liquidity, options,
tight bid/ask spread, volatility. Our
scanners so far filtered on a daily level between 13 and 30 stocks with
NLT-congruent last hour movement.
First findings: Reported
stocks, which produced a confirmed last-hour-signal at the opening, concluded
the expected minimum price move with a probability above 80%. This is
significant.
Statistic for November
14, 2013 (Symbols with prior-day NLT-Signals)
31 Stocks were reported with a last hour NLT signal. The
highest amount of stocks with signals reported this far from a sample of 800 stocks;
however this result was expected by the strong price move the overall stock market
had.
Let us share some of our evaluation terms you find in the final
report:
-
Worked, signifies that the last hour signal of
the prior day was surpassed by the opening candle, triggering a trade and the
traded ended at the set target.
-
Failed means that a trade signals was triggered;
the stock price reverted and came to the stop price level, making the trade a failure.
-
Gap up/down means the price moved above our set
target without letting us participate in the trade and no opportunity for a
limit order price entry and exit was given.
-
Purple Zone identifies a time of ambiguity where
we preferable stay out of a trade, except we receive a power signal from NLT
Top-Line.
-
Neutral means that a trade entry was triggered,
neither the target- nor the stop-level was reached by the end of the day and
the order was closed at the price level where it was opened.
In total we had 19 out of 31 stocks had a confirmed signal;
17 successful trades and 2 failures.
To trade with the odds in our favor, we want to trade for a
minimum 1-SPU-Move (expected minimum price move per time unit observed), above
$0.17, while the SPU move shall represent at least 0.5% of the stocks asking
price.
November 14, 2013 Results
Again, the last hour mover report gave us a fabulous result:
17 out 19 trades with positive outcome: 89% attainment rate (the prior days hat
an attainment rate or 100%, 100%, 84%).
To reduce the number of trading choices, you can use the
following findings from the report:
-
Stocks with a price above $30 have a much higher
likelihood to be congruent with the set NLT targets to trade with the odds in
your favor than stocks with a value below $30.
-
Stocks from the same industry segment seem to
produce conform results; hence we can pick the ones with the best return on
cash for trading them on a triggered signal.
We surely will run more statistics; however, the question is
now, how can you capitalize form our research?
After a trade potential is identified and confirmed, you can
almost automate your orders on the 1-hour chart, best OCO order:
·
Trade Entry at the set threshold or at any new
signal.
·
Trade Target: Formulated with the entry signal
at the set price point or at any of a newly set price point, initiated by a new
signal.
·
Stop from the NLT-Double Decker Line, Box-Line
or NLT Price Gravitation Line, or the low of the trade initiation candle.
·
Trading only when the odds are in our favor and
the potential risk of the trade is below 1.5-times the expected minimum reward.
·
By the high likelihood for a positive trade, as
higher you can set your participation rate: Trades you accept, the higher will
be the probability for you to achieve an overall positive result.
When you join the NeverLossTrading community, you will
receive this report and the opportunity for high probability trading. What would
this mean for your trading?
Check our program-offering and find the one which fits your
specific requirements:
Stock trading is a professional business: If you fail to
prepare, you prepare to fail.
The investment that pays the highest returns is the
investment in you.
Do not trade/invest unprepared.
Let us consult you, call +1 866 455 4520 or contact@NeverLossTrading.com
In support of your trading performance,
Thomas
NeverLossTrading
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