Why we need to back test stock?
Jack Angel shares: To know the support and resistance and to know when to buy or sell.
Why we need to back test?
Belle Layos shares
- learned about bounce trading first (from Money Growers PH)
- reference: ZF's Bounce Plays 101, Kapitan Kidlat's 3 days to Kill,
- back test to test mastery and trade setup
- backtest tools Excel to input data and Word to see charts
Belle Layos setup for bounce play
- previously trending with parabolic move
- 3 day declining rule
- previous Darvas must act as support
- Use Fibonacci retracement with bounce in 38.2%, 50% and 61.8% (From Jason Cam)
- Candle should not close below retracement
- Should have reversal signs like doji or weak candles
- Drying volume, should dry up
- Sell on the 3rd day of bounce
Then on an Excel table, she has the following columns
- Count on how many of the above criteria has been met
- Name of stock/ symbol of stock
- Date
- bounce point
- Fibonacci
- Previous candle
- Volume
- RSI
- AOTS (Alignment of the starts)
- Price as to Moving Averages e.g. below MA 20
- Bounce? Yes or No?
- Resistance
- Number of candles on bounce
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