This will make it somewhat easy to get started focusing on one stock, presumably your favorite stock. This is intended to be simple momentum strategy, using limit orders to both increase profit and reduce risk. I am sharing this as much for my own benefit as for anybody else that might find it useful. Now we can clone it to build more complicated algorithms.
I have thought long and hard about momentum strategies on individual stocks and posted my own system on another thread.
In my view the only real difficulties are portfolio choice and the use of a filter.
Portfolio choice HAS to be generalised by reference to market cap or volume or some fundamental factor and not by reference to individual named stocks
Any backtest HAS to include delisted stocks.
Filter is slightly more difficult. You will see that my system does not use a filter. The reason is a fear of curve fitting but that fear may be misjudged.
Don't go long if S&P 500 or some other index is negative. Probably needs to be done but it makes me a bit nervous. I'm less nervous having just done a 116 year test on the Dow and the S &P but of course no backtest has any real predictive power.
Thanks for your input Anthony. Your post under "A Simple Momentum Rotation System for Stocks" appears to be what you are referring to. It looks promising.
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