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Choosing from multiple securities


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  #1 (permalink)
rickt
ma
 
Posts: 9 since Oct 2009
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Good morning

I don't know if this has been asked elsewhere or if this is the correct forum, but if it has or it isn't, just point me in the correct direction.

When multiple securities (I trade/invest ETFs and mutual funds) have a BUY signal at the same time, what have you found to be the method that gives you the best edge to pick which one to buy? I know that the method that gives the greater edge will not work 100% of the time, but that is ok. I think we are all trying to find the greatest statistical edge.

Thanks

RickT


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  #2 (permalink)
rickt
ma
 
Posts: 9 since Oct 2009
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Thanks Received: 4

Hello

Does anybody have a methodology that gives them an edge when selecting from multiple securities that are candidates for buying?

I have read of several techniques. Some of them are

- buy the security with the greatest positive delta above a moving average
- buy the security with the greatest RSI
- buy the security with the largest historic gain vs its historic risk (stdev)
- buy the security that gives the least total covariance across the entire portfolio

I am interested in what YOU, the real traders, use and have found beneficial.

Thanks

Rick


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  #3 (permalink)
 optimod 
Toronto
 
Experience: Intermediate
Platform: NinjaTrader
Broker: IB/IB
Trading: ES
Posts: 2 since Apr 2010
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Rick, what is your time frame of analysis and typical holding period?


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Last Updated on April 9, 2010


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