Backtesting to select stocks that work effectively for my strategy?

[satintrade]

Hello traders,

I currently trade a watchlist of 30 stocks following my strategy.

However I wanted to reduce my watch list to potentially 5-10 stocks and ONLY trade those stocks.

The reason for this is to narrow my focus and deeply learn/understand those few markets and trade them well

My question is, from my entire watch list of 30 stocks, how do I shortlist 5-10 of them?

I was considering manually back testing my strategy over all 30 stocks for the past 1 year and whichever stocks gave the best results using my strategy- i would shortlist them

Is this a good way to pick stocks that work and react well to your strategy? or is there any other way to go about it?

thanks

 

[Vijay.Chennai]

Hello traders,

I currently trade a watchlist of 30 stocks following my strategy.

However I wanted to reduce my watch list to potentially 5-10 stocks and ONLY trade those stocks.

The reason for this is to narrow my focus and deeply learn/understand those few markets and trade them well

My question is, from my entire watch list of 30 stocks, how do I shortlist 5-10 of them?

I was considering manually back testing my strategy over all 30 stocks for the past 1 year and whichever stocks gave the best results using my strategy- i would shortlist them

Is this a good way to pick stocks that work and react well to your strategy? or is there any other way to go about it?

thanks

1. You can remove non NIFTY 50 stocks first.
2. After that ,pick stocks from sectorial basis. ( Each one from Bank, NBFC, Auto, Metal, Pharma, IT, etc etc)

 

[satintrade]

d

 

[augubhai]

If you are a day trader, I would suggest that you also look at the volume toppers, top gainers and losers. These are stocks that that have a good chance of making big moves during the day. The downside in this case is that the list of scrips will change every day.