Thursday, June 12, 2014

psar psearch wins big on twtr

my psar search examines all 4950 setting combinations of acceleration factor and acceleration limit at a resolution of .01 and spits out the most profitable setting. here's what it found for twtr:
10k traded on twtr  via psar with optimized settings vs. 10k invested via buy 'n hold and dollar cost averaging
passive investing via buy 'n hold turned $10,000 into $8,770. dollar-cost averaging was slightly worse. trading $10,000 via parabolic stop-and-reverse with psar psearch settings made $7,000 and that is without reinvesting profits. now, admittedly, i couldn't have picked these particular psar settings at the ipo but here's twtr from the ipo with the standard aggressive stop managment settings of 1/1 for acceleration factor/limit, resp.
10k traded on twtr via psar with aggressive 1,1 stop settings
a respectable 57% return on trading capital. 

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