6 Steps: Find a Good Trade in the Rubble

Posted by DynamicHedge
on April 17th, 2014

My apologies for not staying on top of posting. CFA time of year again (but, why!?).

Here is a quick routine I used to identify high quality setups in an oversold tape using Market Memory.

Step 1.

Pull a symbol.

Step 2.

Add a filter criteria. In this case, a plain old Bollinger Band. The filter criteria show up in blue highlighting on the chart.

Step 3.

Refine the search. The first Bollinger strike is sometimes noise so we select the second. Also, need to isolate single instances of the event as “anchor dates” for analysis.

Step 4.

Select the historical range (how far in the past you want to look). Select the analysis period (how far after the “anchor date” you want to look).

Step 5.

Analyze preliminary results. Kinda, meh.

Step 6.

Wait a second! Drill down based on the patterns you identify in the Alpha Curves. You might just find something you like…

That’s how you uncover opportunity amongst the rubble. Objective analysis. No hot air. So easy even I can do it

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