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The following is not financial advice. I am describing how I use my trading algorithm for executing trades. This is not a commercial offering. It is simply a demonstration of my algorithm. I am creating an auditable record of these trades in my robinhood dot com account. Please subscribe to this website. Thanks for your interest.

Every day, I run a process that analyzes 1,491 stocks and ETFs. How did I arrive at 1,491? I applied my trading strategy through a back test ( a back test will apply your algorithm day by day as though you were actually trading in order to find out the consequences or benefits ).

The process works like this:

  1. Download today's trading data (open, high, low, close, adjusted close, and volume) for each stock or etf that I am tracking.
  2. Convert to the data to a bunch of arrays.
  3. Run mathematical studies on the arrays.
  4. Check for rule match based on the time series calculations.
  5. Account for a complete match for all entry criteria.
  6. Account for a complete match for all exit criteria.
  7. Generate a list that have either met all the entry criteria or have met all the exit criteria (including that an entry was previously generated).

For any entry or exit, I login to my brokerage account and for each trade that was generated, I will either buy (entry) or sell (exit) the trade that was generated at market open. My preference is to place a limit order at the market open price (sometimes referred to as market-on-open).

Why would I do this?

My trading strategy has the following characteristics (over a back test period of 2010 to present):

  1. There are 6.9 times as many winners as losers ( I only trade those stocks or ETFs with a profit to loss ratio > 3.0 ).
  2. The average winner is 34.1%.
  3. The average loser is 9.1%
  4. The total number of losing trades in my back test is 438.
  5. The total number of winning trades in my back test is 3036.
  6. The ratio of the size of the wins to losses is 3.7.
  7. Of the 1,491 stocks and etfs I could trade, 1,181 have a profit to loss ratio of 3.0 or better.
  8. Of the 1,181 stocks and etfs that have a profit to loss ratio of 3.0 or better, 830 have no losses based on the back test.
  9. The median number of days from entry to exit is 313 days.
  10. The average number of days from entry to exit is 470 days.

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