The Mega Gap System
144108 views

Login to Bookmark
DESCRIPTION:

Date updated:02-06-2007

This is a gap down buying system that applies to the current members of the NDX index.

The system looks at days where the overall index as represented by the QQQQ tracking stock is gapping down by a volatility adjusted amount, and buy’s the members of the index that are gapping down by an even larger but also volatility adjusted amount.

BUY Stock XYZ: If QQQQ is gapping down more than the value of VIX / 100% (so if VIX is 20 then QQQQ has to gap down more than 0.2%) AND if stock XYZ is gapping down more than the greater of 2% or VIX / 10% (so right now a stock would have to be gapping down more than 2%).

SELL: at the close.

To the left are some of the stocks that have worked very well in the system.

symbol name last price % change open
  • +
  • CHKP
    Check Point Softw
  • $32.48
  • -0.88%
  • $32.48

29 out of 42, 70% success rate, avg return 1.8% per trade.

People owning CHKP also tend to own: AEOSCRYPHNRPAYXTCHCTRLGCOSI

  • +
  • CHTR
    Chtr
  • $0.00
  • N/A
  • $N/A

16 successful trades out of 25 occurrences. avg return: 2.46% per trade

People owning CHTR also tend to own: BJRIFLMLHRTLPHINWKORBCSTXN

  • +
  • BRCM
    Broadcom Corporat
  • $28.76
  • -1.37%
  • $28.87

32 successful trades out of 50 occurrences, avg return: 1.5% per trade

People owning BRCM also tend to own: CTSHGOOGINFYMRVLPTIREDFSAY

  • +
  • DELL
    Dell Inc.
  • $14.29
  • -9.96%
  • $14.59

44 out of 68, 1.44% per trade

People owning DELL also tend to own: AAPLAMDCSCOGOOGIBMINTCMSFT

  • +
  • ELNK
    Earthlink
  • $8.47
  • +1.44%
  • $8.42

24 out of 31, 2.32% per trade

People owning ELNK also tend to own: CAMPCEGEFCELIDIXJBLUTALKTIE

  • +
  • NITE
    Knight Capital Gr
  • $15.52
  • +0.06%
  • $15.36

21 out of 29, 3.88% per trade

People owning NITE also tend to own: ABBKEBRCCTRDLBETHKSWS

  • +
  • NTES
    Netease.com
  • $38.25
  • +2.82%
  • $37.15

14 out of 21, 1.45% per trade

People owning NTES also tend to own: AAPLACIAEMCOPERFGOOGHAL

  • +
  • NVLS
    Novellus Systems
  • $20.96
  • +0.34%
  • $20.80

22 out of 31, 1.72% per trade

People owning NVLS also tend to own: AMATAMDAMXCNQRDADWIIG

  • Page 1 of 2
  • 1
  • 2
previous next

Simulated using 10% of equity per trade on the 300 most volatile stocks in the Nasdaq. The test runs from January 1, 2000 to Dec 31, 2006. That period encompasses bear markets, bull markets, volatile, non-volatile, meandering markets, etc.

Results:
2,992 occurrences of the system. 1841 winning trades (61.5%), average return per trade (including both wins and losses): 1.25%


2000: 88% 611 occurrences
2001: 96% 663 occurrences
2002: 128% 560 occurrences
2003: 71% 313 occurrences
2004: 62% 447 occurrences
2005: 15% 193 occurrences
2006: 10% 205 occurrences

09/22/2009 04:54 AM CDT Asked by beefandy
finance news
technology news
entertainment news
free press release

08/02/2009 15:07 PM CDT Asked by stock55stock
New Trading Method Revealed - www.secret4trading.com

If You Know One Hidden Secret...

Please Visit The Webpage

[url]http://www.secret4trading.com[/url]

02/16/2009 19:26 PM CST Asked by beefandy
free instant credit reports
free credit reports
improve your credit score
how to establish credit
free credit report

01/28/2009 08:51 AM CST Asked by beefandy
tractor hire hog hire fuel bowsers

12/30/2008 11:03 AM CST Asked by beefandy
earn money at home
earn money online
earn money taking online surveys

11/20/2008 07:49 AM CST Asked by beefandy
muscle cars for sale

10/07/2008 13:27 PM CDT Asked by beefandy
earn cash make money online
best acne treatment
natural acne treatment

10/01/2008 12:04 PM CDT Asked by beefandy
vote for hot moms pictures

08/20/2008 09:45 AM CDT Asked by beefandy
Doubling Stocks
Doubling Stocks is a system that uses a stock trading robot to predict successful picks

07/06/2008 08:08 AM CDT Asked by beefandy
Forex Strategies
Reverse Search Phone Number
Reverse Phone Number Search
Caricature Drawing

show all comments

ADD YOUR COMMENTS:

latest articles | popular forums
Cramer's Take on Headline Stocks...

Not a Stockpickr member? Join the community today -- for free.Regardless of why a stock is in the news, it never hurts to hear what a professional investor has to say about...

11.20.09 | 11:48 AM
Jim Cramer's Portfolios of the Week

By Roberto Pedone Posted on Nov. 20, 2009 According to Jim Cramer, options expiration is driving the current market selloff. He pointed out that the only stocks that we...

11.20.09 | 08:09 AM
'Fast Money' Portfolios of the Week

By Roberto Pedone Posted on Nov. 19, 2009 According to CNBC’s “Fast Money” traders, the stock market is showing no signs of stopping its current bull run. Joe Ter...

11.19.09 | 11:13 AM
Squeezing the Shorts: Earnings G...

By Jonas Elmerraji Posted on Nov. 18, 2009 There are plenty of reasons for stocks to have the attention of short-sellers. Waning financials, a deteriorating business mo...

11.18.09 | 12:36 PM
more articles
possible environmental problems ...
11.21.09 | 16:40 PM From author fine tune your disciplines
General market Technical Analysi...
11.14.07 | 22:55 PM From author ZA
Cartoon Thread
11.15.07 | 20:31 PM From author Peter near Matanzas Inlet
The Presidential/Political Thread
01.02.08 | 08:05 AM From author Dave Cox
more forums
recent answers | popular answers
bubble(0)
today 's lists
TheStreet.com TV Videos

These are some of the stocks mentioned on TheStreet.com TV recently. Click the URL below each stock to watch the videos. more

Biggest % Gainers

Here are some of the largest % gainers from Nov. 20, 2009. more

Stocks With Unusual Option Activity

Unusually active options can often indicate that a major event in a stock is about to take place, or that unsophisticated investors (using options in lieu of leverage) are ... more

show all today's lists