Trading Systems

MyTechTrades uses three technical stock trading systems developed through extensive testing and optimization.

The objectives were to design and test systems that:

• produced relatively short-term trades;
• produced gains relatively evenly over a number of years;
• beat "the market" across different market conditions;
• produced results that were not dependent on a few big gains or losses;
• did not produce an overwhelming number of trades to execute;
• were easy to understand and follow.

Every day after the markets close, the systems look for trading opportunities for the next day in their respective sets of stocks. The algorithms look for stock trading opportunities only in stocks from the New York Stock Exchange and the S&P 500 and S&P 600 Small Cap indexes.

These stock trading systems are primarily structured around buying stocks when their Relative Strength Index (RSI) is low and price and volume have turned up.

Please go to Results for YTD 2011 results through the most recent quarter. Please go to Backtests for 5-year results.

All “buy” and “sell” signals are generated using daily closing data. The trades are then submitted to online brokers for automatic execution when the markets open the next day.

The trading systems produce results that differ considerably from each other in terms of:

• number of trades generated;
• length of trades;
• win/loss ratio;
• type of stocks.