You must do the things you think you cannot do.

- Eleanor Roosevelt

Friday, August 20, 2010

Interesting Fact


If since 50days after GOOG went public you traded it using a simple 50-day MA strategy you would be up 243%. All it requires is you to cover any open shorts and buy GOOG at the open, following a day when GOOG closes above its 50-day. When it closes below its 50-day, you do the opposite: sell any longs and then short. While to many traders who want to make returns like that every day (haha), it may not sound like much. But a decent gain considering the plan is simple and easy to execute. Also, that is with ~65 trades, so commission shouldn't take too big a chunk out of the person's account.

I've been using Excel (well, openoffice's version called calc) to back test various strategies. The one above was me trying to figure out how the hell to use the program. At first I had to enter all the data manually. Then I figured out you could import data from a website (such as finance.yahoo.com), which made things so much easier and more complete. The same thing happened with formulas. At the beginning I would enter formulas by hand, but then figured out you could merely drag the same formula over multiple rows and that it would incrementally change the values for you. Such is the beauty of technology.

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