Hi Dave,Dave S. wrote:I'm new to this type of trading - can you tell me about ETF's?
This thread could be a place to start:
"Why actively trade ETFs?"
http://www.elitetrader.com/vb/printthre ... eadid=8052
Hi Dave,Dave S. wrote:I'm new to this type of trading - can you tell me about ETF's?
rs, the april 30 2002 study seems to agree with you.I have been doing some basic research on applying long term trend following principles to stocks. It seems to me that they can work reasonably well on the small/ midcap universe where one can really pick up on some outsize moves(ie doubling or tripling of stocks) rather than the large cap stocks which tend to have huge retracements and not provide the same opportunity for profit.
Has anyone else done research on this and did they have similar findings?
yp, you should find some information also.do we pick each stock from different industry group.
Tradingcoach,Now the stock markets trend no more I find my focus back in the futures arena but stocks I think have a void in good long term systems.
Think of it this way. Let's say every stock movement has two components. Component one is the underlying movement of the market (or at least that market sector) which moves the stock along, while component two is movement specific to the individual stock. Now just assume each component has a 50% weight in the movement of stocks.rs wrote:Hi all,
I am a little unclear as to why you would end up emulating an index if you trade many of the strongest stocks out there. If you are picking stocks by a long term trend following methodology then you will stay with the strong stocks and sell the weak ones. Thus concentrating your holdings into the strongest stocks in the index. You would not have exposure to the losers so would not emulate the index.
Perhaps I am missing something but that is my perspective.
rs
I would suggest reading Michael Lauer's interview in Stock Market Wizards, he's done his homework on this subject.yuri wrote:I have to agree with Gerry, I've been looking into trading stocks mechanically for years. But my experience also dictates that trading many stocks together..begins to emulate an index.
Would like to hear other view on this.
Are we talking about stocks that have a low correlation to sp ?
is there an initial criteria that we choose prior to picking the stocks ?
do we pick each stock from different industry group.
I've been looking into this for a while now...but would like to hear other's opinion on preliminary selection for picking stocks to include in the mix ?
Forum Mgmnt, if you can expand on your prior posts regarding correlation of stocks vs. futures..it would be great.
thanks.
mrscott wrote:I would suggest reading Michael Lauer's interview in Stock Market Wizards, he's done his homework on this subject.yuri wrote:I have to agree with Gerry, I've been looking into trading stocks mechanically for years. But my experience also dictates that trading many stocks together..begins to emulate an index.
Would like to hear other view on this.
Are we talking about stocks that have a low correlation to sp ?
is there an initial criteria that we choose prior to picking the stocks ?
do we pick each stock from different industry group.
I've been looking into this for a while now...but would like to hear other's opinion on preliminary selection for picking stocks to include in the mix ?
Forum Mgmnt, if you can expand on your prior posts regarding correlation of stocks vs. futures..it would be great.
thanks.