Tuesday, June 24, 2014

New Multi Year Highs

Look for a link to last evenings screen at the bottom of this page.

Remember that stocks are never too high for you to begin buying or too low to begin selling. Reminiscences of a Stock Operator (Jesse Livermore)
The Prudent Trader publishes a screen everyday of stocks making multi-year highs. I thought it would be interesting to back test this idea of buying new multi-year highs, this test which occurred a little over two years ago will hopefully be updated sometime in the fall. The conditions of the test:
  • SP500 is above its 100 day moving average.
  • Stocks 7 day moving average of  volume exceeds 500K.
  • We'll allow some room so the stop will be the trailing 3 month low.
  • If not stopped out, sell in 30 trading days.
  • $100K account maximum position size is 5% of equity - allowing up to 20 positions at any given time.
  • Buy and Sell price is always the opening on the following day.
  • Run against all stocks in the Worden Database (~7,300), from 1/1/2000 thru April 2012.
Results:

To Get Last Nights List Click HERE!

2 comments:

trystan said...

Hi Bill,

was the test you done which is depicted in the image a valid test (actual)? Also, what date ranges did this run from?

Thanks

Tryst

Bill Zimmer said...

Hi Tryst,

That was a back test and as you can see on the chart was run from the year2000 through May of 2012.

My Best
Bill