CN's Blog

I met with Prof. Woglom today and showed him the Excel file I worked on over this weekend. I will attach the file here when I get a chance.

Trading rules are as follows:

• If stock rises by x% or more, buy long position.
• If stock then falls by x% or more and price is still above the buy-in price, sell current position and furthermore sell short.
• If stock then rises by x% or more and price is still below the second sell-short price, cover short position and buy long position.
• If during a long position the stock falls by x% or more but price is below the buy-in price, then hold.
• If during a short position the stock rises by x% or more but price is above sell-short price, then hold.
• Likewise, if stock initially falls x%, then short position first.
• We apply this strategy to all historical data that we have.