A New System, A New Day

HedgeFundLIVE.com — As I mentioned in my blog over the weekend, Click Here to check it out, I spoke about looking at heavy volume gaines and decliners to finding great trading opportunities day after day.  

The last week we have been running a mock portfolio of the heavy volume names that fit our criteria and the results have been good. Over the last few days we’ve clocked positive PNL everyday with the high intra-day PNL being just shy of $10,000 on roughly $175,000 of long exposure.

After seeing consistent results from this strategy I sat down with Marc Schwartz last night to put guidelines in place and start putting on these trades.

Below is a rough outline of the guidelines we put together last night:

–       Buying stocks that are breaking up significant volume.

–       Selling Short names that are breaking down on significant volume.

–       Buying names that are closing at the highs.

–       Selling short names that are closing at lows.

Criteria

–       90 Day Average Daily Volume must be greater than 150,000 shares.

–       Volume that day must be at least 2.5x the stocks 30 Day Average Volume.

–       Buying names that are breaking out of a significant range and that are closing within 20% of the high of the daily range.

–       Selling short names that are breaking down on significant range and that are closing within 20% of the low of the daily range.

Click Here for full article.

http://www.hedgefundlive.com/blog/12833

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