New Trading Tool

Hello Fellow Traders,

While I am new to the forum, have been trading stocks for the last 5 years.

I am now looking to develop an Excel based tool which I will release to fellow traders. Before venturing to develop the same, the following is the strategy, on which I welcome comments, suggestions and criticism so that I can incorporate all good ideas.

The tool will be written in Visual Basic.
It will take EOD data from any free source. (Suggestions Yahoo/Google/Other)
The tool with list stock that makes new 10 day high & 10 day low or weekly high or low.

The idea is to buy strength, and sell weekness.

Will this simple tool be helpful to traders.?

Any comments, suggestions.?

Thanks

Hi ZenTrade,

Your initiative is welcome here...Looking forward to know your research and strategy ..
It will be very useful for trader like me (not very experienced and made a good enough loss in Market ) by using wrong strategies....

Waiting for your guidance ...

:thumb:

Hi Zen... As you are telling the idea to buy the strength and sell weak....But plz specify on what basis u will decide if its strong or weak... and also let me know abt the other indicator which u use... in short plz give TA

Good initiative. Good to see somebody coming forward to kill my boredom.

My suggestion, it would be better to take the stocks making 52 Week High or Low. My opinion is that if you go for 10 Day Low or High, it might be some times too late to trade the stock because in 10 days the stock might have made enough High or Low. So stocks making Fresh 52 Week Low or High might be a good option... The 52 Week Low / High data also readily available from most of the data providers... If not 52 Week, we can also go for 26 week (half yearly) or 13 week (quarterly). :clap:

I am fully agree with Raj's observation...

Anyways I am a fan of RAJ's thought process...But this time not blindly agreeing with his suggestion, rather it is a most widely practice uses by traders...

But still if ZEN has come out with any advanced development on this issue, ZEN is most welcome to teach us his system ...

WHAT SAY ???


ZEN waiting for your research on the subject stated ....

Healthraj, thank you for the feedback. As you rightly said, stocks with 52 week High and Low are listed on NSE website which any positional player can refer, and so to have a tool for that would be pretty pointless. But it is not right to say that it is too late to trade stocks with 10 day H/L as they would have moved much higher. For eg.s a stock may trade around the 80-90 range, and the high would be say 93 on day 3, and would fall back to the range. Only if the stock closes over 94 or over any day thereafter (this would be the highest high on closing basis in the last 10 days) would imply strenght. The XL tracker would list such stocks which has higher odds of moving higher.

Anup/Lets grow together this is the idea behind the XL tracker i.e to buy strength and sell weakness.

I did ask for feedback and suggestions, but there is very little of it from anybody, and meanwhile I am studing how to incorporate other indicators or oscillators which can gauge the strength or weakness of the short term trend, with an idea of 2-3% profit in 2-3 days, with a higher degree of success.

Is this a good idea? Will this work? Can this idea be improved upon.? Is this re-inventing the wheel? since one can program this formula in Amibroker and get this info easily, and hence a waste of time? What do you folks think.?

Can anybody back-test this in any system to check if the stock makes a higher high or lower low in the next two three days, % gain, and list the analysis.?

I travel and have my own business so usually am occoupied. Will consider all suggestions that are received over two - three weeks, so when the tool is released is well thought out, practical and useful.