Stocks & Commodities V. 23:5 (48-57): Detecting Breakouts From Flags & Pennants by Markos Katsanos

Stocks & Commodities V. 23:5 (48-57): Detecting Breakouts From Flags & Pennants by Markos Katsanos
Item# \V23\C05\106KATS.pdf
$4.95
Availability: In Stock

Product Description

Stocks & Commodities V. 23:5 (48-57): Detecting Breakouts From Flags & Pennants by Markos Katsanos

Heres a system to identify and trade flag and pennant formations.

In my previous article, I wrote about the measuring implications, duration, and identifying characteristics of flags and their variations, and promised to present a system to identify and trade these short-term and highly profitable formations. I constructed a viable system by distilling the most useful statistics together with technical observations of 100 flag and pennant samples. I optimized the test parameters in further out-of-sample testing of a list of 250 stocks.

In this article, I have presented the formula and methods used in this system, along with the test results on four stocks. I found the most profitable test returned an adequate 187% profit being only 8% of the time in the market, versus a tragic 91% loss for the buy and hold investor.

A frequent trader, however, will need to wait for the next entry signal, since the system test produced only one trade per year on average. Nevertheless, this need not be a major disadvantage, as a daily scan of a large database of stocks is bound to produce a few trades. I ran a MetaStock exploration on a database of 1,250 stocks and produced 13 hits. Results were highly profitable, producing an annualized 735% profit.




FOR THOSE ORDERING ARTICLES SEPARATELY:
*Note: $2.95-$5.95 Articles are in PDF format only. No hard copy of the article(s) will be delivered. During checkout, click the "Download Now" button to immediately receive your article(s) purchase. STOCKS & COMMODITIES magazine is delivered via mail. After paying for your subscription at store.traders.com users can view the S&C Digital Edition in the subscriber's section on Traders.com.




Take Control of Your Trading.
Professional Traders' Starter Kit
All these items shown below only $299.99!
  • 5-year subscription to Technical Analysis of STOCKS & COMMODITIES, The Traders' magazine. (Shipping outside the US is extra. Washington state addresses require sales tax based on your locale.)
  • 5 year access to S&C Archive
  • 5 year access to S&C Digital Edition
  • 5-year subscription to Traders.com Advantage.
  • 5-year subscription to Working Money.
  • Free book selection.
  • Click Here to Order