|
Sacramento, Californioa
Posts: 1 since Nov 2021
Thanks Given: 0
Thanks Received: 0
|
I've been doing day trading for some time now but the problem for me is that I work a day job so I can't be staring at the screen constantly throughout the trading day so I have been looking into strategies where I can day trade with the help of some automation as I usually can only check in on my trades every hour or so.
What I have come up with so far is a strategy where I would identify stocks that seem to have potential for making big moves that day and set buy order entry points with a stop loss not too far below this. However, these are usually at least somewhat volatile stocks so there is a decent chance the stock will cross above this and then back down and hit the stop loss soon after the buy. The strategy I have in mind is that the buy entry point will automatically be set again as soon as the stop loss is triggered.
For example let's say the stock is in a convergence type of pattern but seems to have a lot of potential for a breakout, the top of the convergence seems to be around $50 so I set this as the buy price and I set a stop loss of $49.50. It ends up buying once and then quickly goes back down to hit the stop loss. The system then automatically creates a new trade again with buy of $50 and stop of $49.50. Maybe it hits the buy and stop another time but, later in the day it hits the buy and rockets upward to $56. I check it at least every hour so I eventually see where it is and move the stop loss up to something like $55.
As far as I can tell, there aren't any platforms that provide this functionality to have a trade automatically recreate itself although you can kind of do this in thinkorswim with sequence orders where a stop loss triggers another buy but it is time consuming. I'm a programmer by profession, however, so I have been researching ways to implement this and am working on that.
Certainly this is no get rich quick strategy and requires a lot of work in properly placing the buy and stop loss points and picking the right stocks to trade but I think it has potential. I'm curious of what others think of this though.
|
