Cook's Candles

Cook's Candles

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As mentioned in last week's essay, all of us had got a stock trading system submission to our $1,000.00 Prize Challenge that seen like a winner. The submission we liked the very best came up from Mr. William Cook of Mission Viejo, CA.

It was based upon the observation that from August 18, 2009 to August 13, 2010 the VectorVest Tote Board exhibited that the "Bottom Fishing in Rising Industries" Strategy had a cumulative increase of 104.99% together with an Efficiency Factor, EF, of 24.81%. VST Mighty Mites, yet another fantastic performer, gave a cumulative gain of 85.50% with an EF of 24.48%. These exceptional performances were attained during a period in which the Price of the VectorVest Composite gained 13.04%.

The issue here is that it might have been problematic to repeat the performances of these Practices in actual life. One would have had to purchase the best 10 stocks returned from the Strategy at the market's close every day, sell these at the subsequent day's closing; and then do the method every trading stocks day. We've been discussing on the subject of 4,980 trades over the test period of 249 stock trading days. That does sound just like a total lot to me. Hence the challenge was "to send in a practical, feasible trading technique for harvesting the gain prospective of these great Techniques." We all believe Mr. Cook has presented the perfect system for accomplishing just what exactly we expected so far.

Mr. Cook is actually a long-term user of VectorVest who first bought in 1998. He quit VectorVest for a while; and then re-subscribed in 2005. We connected with at a VectorVest event several years ago, however I can't remember the meeting. Nonetheless, his approach to meeting the challenge was novel and convenient to understand. In order to choose when to purchase and sell off stocks, he applied the VectorVest 7 version of the Market Timing Graph which shows pricing data as Candlesticks. He would most likely go very long when he noticed two consecutive green candles plus an up follow-through day and go into cash when he saw two consecutive red candles plus a down follow-through day. He also used a five-stock portfolio with no Stops and he claimed an 82% gain with 110 trades.

We also got an additional submission which challenges Mr. Cook's candlestick method, although it offers some unusual methods which require the Simulator in order to implement. We plan to alter and test both these techniques hence that end-of-day traders, i.e., the infamous Midnight Cowboys, could utilize them. In the meantime, we like Mr. Cook's suggestions ample to discuss them with you, therefore we're sending him a check for $1,500.00. Thank you, Mr. Cook, for Cook's Candles.

COOK'S CANDLES

Intended for the entire report on exactly how this new stock trading method functions, take a look at the VectorVest University to see Mr. Todd Shaffer, Manager of Research, explain and illustrate this week's interesting "Strategy of the Week" presentation, "Cook's Candles."

Want to learn about stock investing software or stock chart analysis? Start here: http://stockanalysissoftware.blogspot.com/

About the Author:
Author writes regularly on issues related to material and financial. For more information on stock investing software, technical analysis software, visit the stock chart analysis
- http://stockanalysissoftware.blogspot.com/



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