Wednesday, June 3, 2009

Trade #3

I have been missing out!
I just found a whole slew of top performing ETF's that have been going up without me! Sheesh... look at KOL its awesome!

Click for larger... Browser back.

Here is how to find these winners:
(It only works in a bull market)

1. Pick a screener that can limit results to ETF's... I like this one but membership might be required, I'm not sure. Also check here, and the Yahoo offering. There are more.

2. Set the YTD (or quarterly) performance to the highest value available, then run the screen.

3. Sort the list so that the highest performers float to the top.

4. Copy out the top 25 or so.

5. Cross out those with less than 60,000 Average Daily Volume (or pick a higher number)

6. Look for entry points on the 60 minute, 4 week chart. Buy when ready (MACD crossings are nice).

7. Set a stop based on the Parabolic SAR. Update the stop every couple of trading hours or so.

8. Repeat as required.

Optionally, this paradigm could be modified by substituting the word 'Daily' for '60 minute'.

For a lower maintenance version, choose less volitile ETF's. See INP, UGA, and SLV's recent activity.

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