In 2018 I have implemented multiple improvements for the stock alerting system: switched to a more reliable market data provider; developed, trained, and implemented more advanced Machine Learning methods for analyzing the data and generating more profitable alerts.
Last year also brought some challenges. In 2018 the number of subscribers became so high that it started to impact the speed of e-mail alerts delivery. It took some e-mail severs longer to process the messages. Some of the subscribers complained that the alerts arrive too late.
To overcome that challenge, I’ve decided to develop a mobile app, which will allow instant delivering of the alerts directly to my subscribers’ smart phones. The Android app is being tested now and will go-live in the end of Q1. The iOS app will follow.
Traditionally, in the beginning of the year, I’m sharing the list of last year’s alerts. The report shows the market conditions for each trading alert and the stock price’s behavior after each alert. This report will help my subscribers to evaluate the quality of the alerts and adjust the trading strategy, if necessary.
I hope these charts will help you to analyze your stock trading approach and make it more profitable. If you need to do back testing of any particular trading strategy, please leave a note at stockstrategytest.com. You can order backtesting or request customized alerts according to your own rules there.
Explanation of the charts (see the example below):
- On the top, you can see the Symbol, Alert Time, Alert price.
- The top chart is RSI index.
- Second, is the price chart of the stock. The blue dotted lines on this chart show the time and the price of an alert.
- Third is the SPY price chart for the same timeframe to give you an idea on the market conditions.
- And the last one, is MACD for the original symbol.
Download the full 2018 stock trading alerts summary in PDF here.
Here you can find the alerts summary for the previous years.
As you can see, in most of the cases, the system generates alerts just before the price starts growing. Clearly, there is a good probability of making profit with these alerts, which are based on supply and demand zones. However, I keep working on ways to improve the performance. As I mentioned, I’ve already implemented the advanced Machine Learning techniques (such as LSTM) and it helped to improve the quality of the alerts. In 2019 I’ll keep refining the algorithm and evaluate other methods.
You can help me make it better. Feel free to share your ideas or suggestions in the comments below. Also, you can easily reach out to me by replying any e-mail alert.
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Happy New Year and Happy Trading!
Alex