RE:THE FAST%K FILTER

A recent post to Stockfether regarding the narrowing down of the Fast%k watchlist.

1/15/2007 1:36:20 PM

Hi Dunamis,
you said
"I just change the volume if there are too many results. BUT, I have to say, I find that the majority (90%+) of stocks that the filter throws out (without changing the volume) go up within a five day window. If you back test it by 5 or 6 days you will see what I mean."

I know I've said before that to narrow down lists into a manageable number of matches I've found that bumping up the volume works good for me.
WHAT I forgot to mention is that with a real bottom fishing method such as the Fast%k<10 what I do instead (and please realize I do this because I love the swishy ones and tolerate risk well,I have been trading over 40 years now and RESPECT the market but do not ever FEAR it) is bump up the ADR(10)to get a smaller list of candidates.
Sorry I didn't mention this before but I have so many things I just do naturally , tucked away in the back of my head after so many years of trading,sometimes I forget to mention them.
That's why I'm thinking about writing a book so even I'll remember them, ha.

Anyway check this out:

Fetcher[show stocks where fast stochastic fast %k(14) is below 10 and volume is above 400000 and close is between 1 and 10 date offset is 1/8/07
and sort column 5 descending
average day range(10)is above 8 percent]

Now this is from last Monday list,a week ago.
Without the ADR added it returned 54 matches with 45 green, 9 red with 8 over 10% gains. Great in itself but maybe too many to manage for most folks.
So adding ADR(10)>4% cuts it down to 29 matches,only 4 red while losing only 1 10%+ gainer.
Upping the ADR to 8% gives 4 matches, all double digit gainers with an average 3 day hold of 44% and current percent gain of 37%!

Date offset of 12/29 gives a perfect example of bumping up ADR% while dropping off losers but keeping many of the nice gainers.
W/o any ADR the scan gives 49 matches, currently 40 gains/9 losses with 14 double digit gainers. Very nice indeed but a lot of matches.
ADR 3% gives 29 matches, 25 gainers/4 losers with 11 double digit gains. Still real nice.
ADR 4% gives only 14 matches but the win/loss ratio is now 14/2 with 6 being double digit gains. Now it's even nicer if you are looking for a smaller list.
Looking for a very small list of 4 I upped it to ADR 6.9 (yes you can bump by tenths) which shows currently all 4 green with 2 of them double digit hits.

Dunamis, if you are interested in this I can be reached at greenonthescreen AT gmail.com if you have any comments or questions.

P.S. You are right about many of the matches going up in that 5-6 day window, plus many keep going much higher as the days go by.
Witness 1 trading month ago 12/12, VXGN and MNCS are still over 100% each and have never really showed signs of backing down if you look at their charts.
Not to suggest we'd ever hold that long but you never know.

This added for this blog:
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