• Australian (ASX) Stock Market Forum

Hello and welcome to Aussie Stock Forums!

To gain full access you must register. Registration is free and takes only a few seconds to complete.

Already a member? Log in here.

Weekly System - Preferred buying day

Discussion in 'Trading Strategies/Systems' started by Trav., May 3, 2019.

  1. Trav.

    Trav.

    Posts:
    189
    Likes Received:
    105
    Joined:
    Nov 27, 2017
    All,

    I am working on my weekly system and by default it appears that people scan after Friday's close and buy on Monday's open.

    I have often thought that buying on a Friday would be a better option (price) for an entry as people might be closing out their positions prior to the weekend. Now I have no evidence of this but just a feeling and I was wondering if anyone has trialled?

    Also I have just run a back-test on Amibroker and selected the From-To dates to start on a Friday and most trades went through on a Friday which did improve my profit by 2.5% and winners by 4%.

    Question - Do you prefer to buy on a particular day? If so why?

    Thanks
     
    Skate and aus_trader like this.
  2. aus_trader

    aus_trader

    Posts:
    545
    Likes Received:
    236
    Joined:
    May 30, 2017
    Good question Trav. I think most individual investors who work on the weekly timeframe buy on the following week, most likely on Monday. This is because they run their scans or stock analysis over the weekend and it gives them time to weed out any duds that pop up in just a pure scan basis. Let's say the scan produces 10 candidates based on charts /price action etc after Friday's close, then research can be done on those over the weekend to find those that are the best of them by weeding out any that have poor financial history or poor management etc...

    Don't know how the institutions and larger funds do it (i.e. which day), but I know a lot of them also use weekly systems for longer term investing.
     
    Trav. and Skate like this.
  3. tech/a

    tech/a No Ordinary Duck

    Posts:
    18,609
    Likes Received:
    2,084
    Joined:
    Oct 14, 2004
    I’ll just throw this one in

    Have you ever thought of using a two day chart
    Cuts out a lot of noise and as far as I know hardly
    Anyone or no one uses that time reference.

    In answer to your question though
    Testing will give you the answer.
     
  4. Knobby22

    Knobby22 Mmmmmm 2nd breakfast

    Posts:
    5,031
    Likes Received:
    370
    Joined:
    Oct 13, 2004
    I'm not a trader except in a minor way but do want to develop these skills when I retire or when the kids finish growing.

    In the Aussie market I have noticed that prices are amplified usually in the positive on Mondays and there is often a bit of a sale on the Friday.

    I have been thinking like the black duck above and thought the ideal system would be an unusual time scale maybe based on Tuesdays and Thursdays.
     
    Trav. likes this.
  5. myrtie100

    myrtie100

    Posts:
    122
    Likes Received:
    37
    Joined:
    Oct 23, 2014
    My weekly system buys and sells at open on Mondays.
    The only reason I chose Monday was it gave me heaps of time over the weekend to look at it.
    I also intend to do a lot of travelling, in and out of range. Which means I'd have plenty of time to ensure i was sorted.
     
    Skate, aus_trader and Trav. like this.
  6. Trav.

    Trav.

    Posts:
    189
    Likes Received:
    105
    Joined:
    Nov 27, 2017
    Thanks for all your responses.

    @tech/a good question. No I have not thought that far ahead mate. I thought trading on a Friday would be cutting edge :rolleyes: but using a 2 day chart is out there.

    I will run some more back tests over the weekend and update the thread on results. But as I suspected people trade a weekly system due to being time poor or like to analyse results in a bit more depth.

    I can relate to the above as I find that when I get a list of buy’s signals generated and sorted by my position score I still like to have a look at the company and recent announcements. This is probably a weakness of mine as I can be swayed by a post on a forum (confirmation bias) but as I am still learning this just helps paint a picture for me.

    Cheers :xyxthumbs
     
    Skate likes this.
  7. kid hustlr

    kid hustlr

    Posts:
    1,838
    Likes Received:
    343
    Joined:
    Jun 9, 2011
    Monday morning the depth can be quite thin which I would think hurts weekly systems.

    What about executing on Monday close?
     
    Trav. likes this.
  8. investtrader

    investtrader

    Posts:
    27
    Likes Received:
    22
    Joined:
    Jul 25, 2016
    Doesn't make a great deal of difference if the system is longer term. Very easy to test in AB. Try to trade at the same time each week I think makes sense. Or if your volume may be larger, then do it in two trades at the same time eg close to the close Friday and then same on Monday.
     
    aus_trader and Trav. like this.
  9. Trav.

    Trav.

    Posts:
    189
    Likes Received:
    105
    Joined:
    Nov 27, 2017
    I have done a quick back test on a variety of days and buying on open or close. Results below but as @investtrader suggests not much difference noticed on this weekly system.

    It is an interesting exercise and will no doubt continue to review and tweak

    upload_2019-5-4_10-18-25.png
     

    Attached Files:

  10. qldfrog

    qldfrog

    Posts:
    2,343
    Likes Received:
    508
    Joined:
    Jun 8, 2008
    I had that very same thought when developing my system which is a weekly one.
    I so shifted my week with day(s)o and compared the various backtest results.
    In my case no significant difference so i reverted to buy at open on Monday as it gives me more time, even with my very easy time constraints, the weekend adds plenty of time to manually send your orders
    One drawback i found:
    I do my analysis on friday night, pass a buy order for Monday
    And discover on Monday that the share is now ex dividend which did not show up as such on friday night on the bell direct website..
    So you might buy too high if careless
    Hope this helps others
     
    aus_trader and Trav. like this.
  11. Sir Burr

    Sir Burr

    Posts:
    485
    Likes Received:
    43
    Joined:
    Feb 15, 2006
    Nice!

    I'm another one that has a weekly and buy Monday mornings. Unless fully invested I just place the trades buy/sells over the weekend.

    Otherwise place sells on the weekend. Wait for any sells (using an IB spreadsheet) and then the buys. If stocks starting high in the alphabet I'll set buys for 10:05 and if lower alphabet just set for 10:10 :)
    Not me, I've got the time to trade shorter term but found it made little different to the outcome. Also, besides looking at ASX announcements to see if there's something odd, never analyse anything. Just pick the top results in Amibroker.

    One thing, always compare your results to the index. If little difference the you might as well buy an index ETF and save the effort :)
     
    Last edited: May 4, 2019
    qldfrog, myrtie100, Cam019 and 2 others like this.
Loading...

Share This Page