No. of Recommendations: 1
Fidelity's stock scanner breaks stocks into five groups by price:

Very low-priced, $0-$1.89
Low-priced, $1.89-$10.14
Medium, $10.14-$23.92
High, $23.92-$54.19
Very high, $54.19 & up.

Most of the very low-priced stocks aren't optionable (only 223 out of 1336), and many aren't very liquid. But low-priced stocks allow experiments to be run cheaply. So I ranked them in descending order by price and exported the max 200 that Fido allows per export, pulled a year's daily data for them (ending 10/25), feed that into my charting program, and then ran a scan for signals. Nine 'buys' were suggested.

Now comes the problem of how to score those signals. If bought as a basket at market open, here's the results (as of an hour ago, or as long as it has taken me to type this).

in @ 1.35, now 1.63, a gain of 20.7%.
in @ 1.25, now 1.33, a gain of 6.4%
in @ 0.96, now 1.00, a gain of 4.2%

in @ 1.27, now 1.28, a scratch at +78bps.
in @ 0.69, now 0.69, a true scratch.

in @ 1.30, now 1.26, a loss of -3.1%.
in @ 1.80, now 1.70, a loss of -5.6%.
in @ 1.70, now 1.57, a loss of -7.6%
in @ 0.61, now 0.59, a loss of -14.5%

The basket would have been marginably profitable with a gain of 0.5%. However, if the basket had been properly managed and left-hand tails had been chopped (by trailing 5%-8% stops), then 7.0% would have been made, which is decent money for a morning's work.

Now come some realities. Some of those stocks are hugely illiquid. (One didn't open for trading until just a while ago.) Some had made most of their move on Friday and were already retracing. Also, the only sensible way to trade a basket would be to use equal-dollar weighting. Had that been done without stops, the basket would have been only marginably profitable as before and gained 25 bps. But if the worst of the losses had been kept to a more reasonable (-8%), then 6.4% would have been gained, which is decent money for a morning's work.

On the whole, I think the results of this experiment are encouraging. The buy signals are easy to obtain and offer a positive edge. Trade profits worth pursuing will come from proper trade management (about which TMF is totally clueless.)

Some caveats: If I continue to post comments on my experiments, open trades will NOT be discussed, nor the software I'm using, which is a legacy program no longer sold or supported, but far more robust than the usual suspects (MetaStock, etc) and far easier use. So, why post? because I'm looking 1-2 years out to after Trump's re-election when the supports for the economy will be eased and selling short will be the proper trade. I need to have my procedures in place before markets drop by the (-40%) to (-80%) they will.
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