One of the most frustrating questions (not frustrating b/c of the question itself, but b/c of the sheer amount of times i have to answer it) is "what do u look for when u're tracking stocks/data etc'.
Guys, pls keep it simple. the goal of tracking is to simply find correlations
Guys, pls keep it simple. the goal of tracking is to simply find correlations
the goal of tracking/backtesting etc is to make up for the lack of experience.
So instead of trading 1000 times over the course of years, in order to figure out what works and what doesn't, data tracking simply allows u to do this without putting capital at risk.
So instead of trading 1000 times over the course of years, in order to figure out what works and what doesn't, data tracking simply allows u to do this without putting capital at risk.
so you simply build a database of thousands of stocks that fit the pattern/setup that u want to trade, and you simply look for correlations.
Example, i wanted to master shortselling, so I collected EVERY single lowfloat runner i could get my hands on, every squeeze, every fade
Example, i wanted to master shortselling, so I collected EVERY single lowfloat runner i could get my hands on, every squeeze, every fade
and I then categorized them. Choppy faders, clean all day faders, squeezes, traps, black swans etc.
Once they were categorized, I then looked for correlations. What did the CLEAN all day faders have in common? what did the choppy ones have? what did the squeezes have?
Once they were categorized, I then looked for correlations. What did the CLEAN all day faders have in common? what did the choppy ones have? what did the squeezes have?
By doing this, you start to see AMAZING correlations.
The clean faders fade around this time of day, trade around this much volume, their high of day happens around this time, they usually fail when "X" indicator does this or that, their fundamentals usually look like this etc
The clean faders fade around this time of day, trade around this much volume, their high of day happens around this time, they usually fail when "X" indicator does this or that, their fundamentals usually look like this etc
It's that fucking simple. u're just looking for correlations. What factors consistently PRECEDE the move you're trying to capture. It doesnt have to work 10 out of 10 times, but just enough to build a system around it. That's it. That's all tracking is. Stop over complicating it
So when I say "oh wow. I love this stock. it has a ADF score of 90%". It simply means it meets 90% of the criteria a clean all day fader must have, based on the THOUSANDS of all day faders I have in my databases. ADF score of 50% means it only has 50% of the criteria (bad setup)
So that's all tracking is. nothing magical or fancy.
Now, is it tedious? boring? requires a MASSIVE time investment? u're damn fucking right. but what other choice do u have? what edge ever came without sacrifice? just put in the work or give up. end of story.
#BearTipOfTheDay
Now, is it tedious? boring? requires a MASSIVE time investment? u're damn fucking right. but what other choice do u have? what edge ever came without sacrifice? just put in the work or give up. end of story.
#BearTipOfTheDay
