Hello Metastock Users:

 

I would like to get everyone's opinion on the following Darvas scan to run search new Darvas trades.

Looking to find Hot Momentum stocks using the Darvas trading method.

Price >$5

New High 52-Week High-Yes

52-week High > 2X52-week Low

Formula:

New High Col A: H>ref(HHV(H,250),-1)

Significant High Col B: HHV(H,250)>2*LLV(L,250)

Close Col C: CLOSE

Previous Close Col D: Ref(Close,-1)

% Change Col E: ROC(Close,1percent)

Volume Col F:  VOLUME

5 Year High Col G: HHV(C,1250)

4 Month Low Col H: LLV(L,88)

6 Month ROC Col I: ROC(C,126,%)

Filter: Col A =1 AND Col B =1 AND Col C >5 AND Volume > 50000

Maybe we should add recent volume change of at least a 400% increase compared to the average daily volume for the past few weeks. plus the stock must also be rising in price and make a new yearly high.

Would like to get everyone's feedback on this scan and I' m open for any suggestions all memebers can give me. I know there a re a few scans out there that require fundamental dat to run the scan. But Metastock doesn 't have that capablility.

Here are a few scans that require fundamental data, would like to have the same scan but using into Metastock any suggestions on running a scan without fundamental data that will scan for hot momentum stocks?

Scan 1:

Stock Price history: % change last six months greater than 100

Growth rate: EPS growth QTR vs QTR greater than 50

Growth rate: EPS growth Year vs Year Greater than 50

Tradin/Volume Average Daily volume last QTR greater than 100,000

Market Capitalization less than 2,000,000,000

Stock Price greater than $4 and less than $30

5 year High  display

Scan 2

Earnings per share up at least 40% this qtr over last year's same qtr

sales per share up at least 40% this qtr over sales per share last year's same qtr

stocks relative strength to be in the top 15% you only want stocks with a relative strength  rating 85 or beter. or doubled in the last year

average daily volume 250,000 per day

stock price $15 or higher

member of the top 50 industry group

Looking to hear from everyone's suggestions.

nasdaqtrader

 

 

 

 

 

 

 

 

    I ran it as:
a1:=If(C>5,1,0);
a2:=If(C>Ref(HHV(C,52),-1),1,0);
a3:=If(HHV(C,52)>LLV(C,52)*2,1,0);
a4:=If(V>50000,1,0);
a1*a2*a3*a4
and got 2.3:1 win/loss with 45% of trades being wins. Avg win around $1200,
duration=75 days.
I would need to get % wins up close to 60%  somehow.

 

johnl

Do you think we can get the % win up to 80% somehow, I think that would be perfect.

Do you have any ideas how we can bring the % win up?

Also could we try to get the hot momentum stocks incoporated in the scan?

Looking hearing from you soon.

nasdaqtrader

    I can play around with it, need some sort of filter to get the % wins up.
 As far as adding fundamental info into the mix I am still looking. Equis had at one
time access to fundamental data but was way too expensive for me.
Navallier (when I once used him) has a portfoliograbber that ranks stocks  from a list which  worked pretty good (a copy/paste from MS explorer). A good upgrade (or addon) would be a do-it-yourself file that can be populated from excel with what ever data you want that  a explorer can key into by symbol and bring the selected column fundamental data into MS explorers. You could also create a "fundamental window" with the data so you can access it from the chart screen.  I think that would be neat.

    I added:
(MFI(14)<55)
AND
(BarsSince(MFI(14)<40)<BarsSince(MFI(14)>60))
AND
(Mov(C,20,S)>Mov(C,50,S))
and got 66% wins 1330 profit/win 2.6 win/loss, 108 trade days but  only 32 trades from 2002 so no good, need more signals in order to diversify the portfolio trades correctly. 
But you get the concept: Start with a idea (DARVAS) and then fiddle with it using other
indicators as filters.
 

johnl,

Thank you for your quick responses. Are you familiar on how to create a Fundamental screener in MS Excel? that can be imported into Metastock Explorere. Or if you are not familiar in creating a screener do you know any other metastock user that may be familiar with this project.

I have a few fundamental screener ideas that can be used in Darvas style trading.

regards,

nasdaqtrader

    Can't help you there.  I am stll looking around for a cheap interface between a list of
    stock symbols and fundamental info. I suggested the above excel route as a hint to
  equis only because it it would be flexible but at the same time robust for the end user. It
  all depends on if it could be programmed on the MS side. Everyone provides that info.
  free (Yahoo, Google,  Brokerage companies, etc) but not exactly in a the way I want to
   access the info.
    All I was thinking was MS to have a file that columns in that file could be referenced
    from a explorer (FndC) would reference column C in the the new fundamental file
    (just like ColA refers to column A of the explorer),  does a look up in the file by
    symbol and pulls that info into the explorer column.
    I can narrow 3500 stocks down to around 50-100 on MS, then I head over to
   Yahoo to do the fundamental analysis, growth rate, margin, etc. to narrow the list down
   further.