Hi,

Are you successfully live trading penny stocks? Saw some bad experiences here a few years ago regarding liquidity and order filling https://www.quantopian.com/posts/the-gold-king-and-his-knights#598217b410be7866c77f72ac

Thanks!

Marc
Thank you very much for the response. No, I am not trading penny stocks but I have done a great deal of work on them this past month and understand the problems. I went through those algos of Charles Witt with a fine tooth comb and one of them was duplicated on Quantconnect which I cloned and played with.

The insuperable problem with Charle's algos was that he was, by design, playing with the lowest volume stocks. If you look at my algo, I avoid this problem by only playing with high volume penny stocks.

With high volume the bid offered spread is not a problem. Or at east not a problem at the time you trade it. Volume comes and goes but if you take a look at my algo, it filters to ensure sufficient volume at the time of the trade.

Sykes and his "pupils" specialize in talking the talk. Whether they also walk the walk or whether they make their money by selling courses, videos and assorted paraphernalia I couldn't tell you.

The patterns they talk of certainly exist but they have not quantified or back tested those patterns. The have "rules" and "systems" but again these are not properly codified or quantified.

They claim to be making a great deal of money trading penny stocks.

Lets find out if that is likely. Or not.

Thanks for the clarification @ Zenothestoic. The volume here is a good point! I saw you mentioned it a month ago and created the volume filter in your algo:

    # High dollar volume filter.  
    base_universe = AverageDollarVolume(  
        window_length=20,  
        mask=tradeable_stocks  
    ).percentile_between(LowVar, HighVar)  

https://www.quantopian.com/posts/revisiting-penny-stocks

Is similar to this the algo you are trading?

Thanks in advance.

No, totally different. You can find my code at Quantconnect. If you or anyone else think you have improvements or good ideas to add I am happy to re-code it for Quantopian.