I am a profitable trader looking to optimize my stock trading edge. SOME STOCK MARKET KNOWLEDGE IS NECESSARY FOR THIS PROJECT. You need to be familiar with shorting and calculating profit/losses from prices and position sizes. You will be analyzing and optimizing how well a trading strategy works over a set number of samples in an Excel spreadsheet.
The setup I’m looking at is the OTC First Red Day setup:
A stock in the OTC market has multiple consecutive green days
When the stock first goes red (below PDC aka g/r), a short position is placed at the PDC level, risking off Day High. (Please include the word 'Stock' in your reply to show you have read my summary). This $ risk is always fixed to $100. Position size is the only variable that changes.
The stock will either hit its target (determined by a formula), or it won’t and it will exit at the average between the Bounce High and Day Low instead.
There are multiple possible target formulas that can be used based on the extension. I’d like to find the optimal target formula using multiple simulations.
Please see attached files for more detailed info.
Please ask as many questions as you need! I will reply ASAP. This is a big project and needs to be done correctly to maximize productivity.