The working person’s trading method detailed. Part 8 The Weekend Routine and Scans
The Weekend Grind
As I have stated before, I do most of my research on the weekends. There are several reasons for this, one it allows you to focus a little better as the markets are closed. You have complete data for the weekly charts as well. Primarily, I do most of my research on the weekend, because that is when I have the most time. This allows me to run on auto pilot during the week, when I am the busiest.
Primary Scans
Update 11/23/17: I primarily am running the Monthly Episodic Pivots Scan(see the resources section for the PCF), TI65, and the SwingTrade IPO scan at this point. I have found that they cast a wide enough net to catch everything I need to catch. Always look to iterate and improve as needed.
I do the same thing most weekends. I have a couple of scans I only run bi-weekly. Trend Scan and the Stage Analysis Screener are the two that I rotate. I use Google Calendar to keep track of what I need to do each weekend. Every week I run the Dave Landy Bowties Scan, Young Trends TI65, TI65, and SwingTradeBot’s IPO Screener.
These scans can be found in the Resources section, but here they are again:
- TI65
avgc7/avgc65>=1.05 and minv3.1>=100000
-A Stockbee Scan. I run this every weekend. It is a momentum scan that looks for stocks whose trailing 7 day average close is 5% or more above the 65 day average close. I look for newer trends. - Young Trends TI65
avgc7/avgc65>=1.05 and AVGC7.20 / AVGC65.20 <= 1.05 and minv3.1>=100000
-I run this every weekend. It looks for stocks that recently flipped from Bearish TI65 to Bullish TI65. - Landry Bowtie Crossover
(C > AVGC10 AND C10 < AVGC10.10) AND (AVGC10.10 < XAVGC20.10 AND AVGC10 > XAVGC20) AND (XAVGC20.10 < XAVGC30.10 AND XAVGC20 > XAVGC30)
-I run this every weekend. It looks for the Dave Landry Bowties that have happened in the previous 10 days. I sort this by TI65 and go through the top 20–30. - Trend Scan
abs(c>avgc70)*125
-I run this every other weekend. It looks for stocks that have been above the 70 day moving average for the longest period of time. It is a way to measure trend strength. - Stage Analysis
NextBigTrade Stage Analysis Screen
-I run this every other weekend. I look for stocks moving into stage 2 which is the potential start of a new trend. - IPOs
SwingTradeBot IPO Screener
-I go through this every weekend. I sort by nearest to high and most recent IPOs and go through the top 10 or so.
I look for the same thing in these scans that I look for in every scan. I look for SuperStocks and Trend/Momentum stocks. I add high quality names to my watch list. Furthermore, I take my list that I compiled from the daily Episodic Pivots scan and further research these to see if they are watch list quality. I add anywhere from 0 to maybe 5 stocks max a week. I try to keep my watch list between 100–125 names. I will go through the list and pare it down as needed.
Market Internals
I also quickly go through the market indexes. I have a Daily, Weekly, and Monthly Market Trend Tab that I go through quickly to get a basic feel for the health of the markets. These are simply a set of Exponential Moving Averages that I place onto daily, weekly, and monthly charts. For the daily charts I use EMA20, and EMA50. Weekly I use EMA17 and EMA43. Monthly I use EMA6 and EMA10. I took these from a StockCharts.com user. I cannot remember the name of them, but if I do I will make sure to give credit to them. Basically if the shorter EMA is above the longer EMA the trend is bullish, otherwise it is bearish. I also have some market breadth indicators I go through. You can find these in the resources section. I may have to do a post some time about how I analyze the market internals. It is not that important, or at least I do not put a ton of value on this research. The individual stock research is much more important.
Other Scans(As of 11/23/17: I am not longer running these at all)
From there I do try to go through some Bearish Scans that are essentially the inverse of the previous scans. I try to maintain a Bearish or Short watch list. I admit I do not short much as I have not had the greatest success with it, but I do try to maintain a list as someday I plan to slowly work towards a shorting strategy. I do not always run these scans, it is based on how much time I have. I also have an ETF watch list, both Bullish and Bearish that I try to maintain as well. Again, I do not trade ETFs as much, but it is something I may pursue in the future.
Weekly Watch List/Buys/Alerts
Next, I go through my Watch List and flag the best setups and move roughly the best 15–25 setups to another Watch List called Weekly Long Stocks. Out of this list I will try to flag only the best 5 or so setups. Out of those 5, if I have capital available, I will place orders for the best 2–3 of these. The rest of the stocks on this list I will set alerts in IB at a level I would consider buying them. Then, if the alert triggers, I will check the chart and place orders as needed during the week.
Stops/Targets
I also maintain a stops/targets document in Google Docs. Since I do not use hard stops, I use this list to help me keep track of my stops. I will set alerts in IB, but I do not use actual stops in my broker. Targets I do place limit orders in my broker for. I update this on weekends, or on weekdays as needed.
So what this looks like is as follows:
- Bi-Weekly Trend Scan/Stage Analysis Screener
- Dave Landry Bowties
- Young Trends TI65
- TI65
- Swing Trade Bot IPO Screener
- Weekly Research List from Daily Episodic Pivots Scan
- Market Analysis
- Shorts/ETFs(time permitting)
- Compile list of the best setups for the week(Weekly Long Stocks)
- Place Orders as Needed
- Set Alerts in IB
- Update Stops/Targets
Finally….
That Concludes this series…
That is essentially it for my weekend routine. I am also going to call this good for the Working Person’s Trading Series. I do plan to put out some videos on my daily and weekend process flow at some point to help with setting up scans and to get a better feel for the whole process. For future posts/series I plan to post on my Penny Stock and Crytocurrency strategies. My strategies in those are very similar to this, but there are a few differences that I will get into.
Working person’s trading method series:
Part 1: Why you should trade.
Part 2: Resources
Part 3: My Trading History and Introduction.
Part 4: An overview of my process.
Part 5: The characteristics of a stock that makes my watch list.
Part 6: Money Management: Finding Buy Points, Setting Stops and Targets, Position Sizing
Part 7: The Weekday Routine and Scans
Part 8: The Weekend Routine and Scans
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Originally published at Speculate Freedom.
