I'm very intrigued by Robinhood's 0$ commission, since most mass-order daytrading algo's would be crippled by commission.
With that out of the way, it seems that cutting losses and immediately re-investing becomes much cheaper.
Liquidity:
If I want to place a bulk of orders without running into liquidity problems, what's your recommended metric?
Should I spread investments over the top 10(50?100?) highest dollar-volume stocks?
Regular volume?
Buy at most 100 shares, or perhaps limit to 1% of portfolio?
Entry/Exit:
Since exit/re-entry costs no commission, it's fundamentally about filtering out as many false signals as possible (which I suppose is the goal of all trading in general).
But if I can set a stoploss of 99% or some variation of Bollinger Bands, ATR, etc, then I have to worry about simply capturing tiny portions of strong trends.
I like the Stochastics a lot, would stochastics turning upward be a decent foundation for entry? I would like to know if there is a function for the derivative of the stochastic, so I can find local minimums. Combined with other signals I feel this would allow me to capture small movements with some regularity.
