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Use this strategy fifteen, thirty or some “x” (but within an hour) minutes after market opens.
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Choose the previous close value or the current market value as reference. My choice initially was the second one. I later found that the current market value should be taken within thirty minutes of opening. Making previous close value as reference is found to be slightly conservative. Update on 30-Oct-2007: When the market begins far away from the previous close value, the triggers are completely dominated by the change in market value. In that case, if the reference value is taken as the day’s open value, it is not as conservative as before. I am sure we will have more to say on these issues as we learn.
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-50S means you should sell when the market value decreases by 50 from that of your reference value.
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+100B means you should buy when the market value increases by 100.
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How many times you should use this in a day? I am not sure. But initiating a new pair is not preferred in the last half an hour of trading. Moreover, it also depends upon risk profile.
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The author of this blog is not responsible for any loss or profit one faces following the strategies outlined in this blog.
My first post was about what this blog is all about. It was titled Why has this blog come into existence? I am giving below that first post in its entirety.
I worked on multi-point estimation algorithms to characterize the intra-day dynamics of stock markets for about two years (2001-2002) as part of my doctoral thesis. But it did not find its way into my thesis as the focus had shifted from the development of algorithms to questions related to the framework of modeling stock markets. The algorithms were briefly outlined in a short paper which was selected for presentation at Singapore Economic Review Conference. It was later withdrawn to enable it to be a proprietary work for further development. It was not an algorithm to help you invest in any stock market to make enormous profits. It was not an algorithm to guide you in your trading strategies. It was just an algorithm to capture the intra-day dynamics. I have again started working on those algorithms. I would like to see if the previous work can be extended to give signals like buy and sell which will then be useful during intra-day investments. I will post on this blog the strategies suggested by these algorithms and see how they perform. The frequency of the post depends on the time availability. I am planning to choose indices like SENSEX, NIFTY, etc – Sensex to start with. The same analysis can also be done for individual companies. I will not presently concentrate on it. I am planning however to make such studies in future, will not necessarily be disclosed in public, if people show interests. I will post buy and sell levels for index values as if they are traded just to see how the algorithms perform against them, and will also post their performances. Now for disclaimers -
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I am not claiming anything like you will make profits for sure if you follow these strategies.
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When you invest your money, it is better you take responsibility for it.
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My interest in this is to explore, modify, and tune my algorithms to match the complexities of real markets. However, if I make money during the process either by direct investment or by consultancy, I will, of course, be happy. But I cannot assure the same for you.
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Market investments are quite risky. Hence the kind of investment (be it a short-term, long-term, or on intra-day basis) depends very much on your risk profile.
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