How Our Filter Works
Continuous Improvement is Part of our Product Development Process
In the dynamic realm of the stock market where enhancing profitability is paramount. To address this, we've pioneered a new approach in trading, specifically tailored for EarningsTraders. This streamlined method involves a simple adjustment to the entry price.
Our recent focus has been on refining our entry price strategy, moving away from conventional market open buys. Through meticulous system development, we've observed significant performance enhancements.
The challenge lies in ensuring that any new strategy we adopt remains both straightforward and effective, without overly complicating our existing system.
Years of rigorous performance analysis have highlighted the impact of initial volatility on our systems. Beyond the surface of strong earnings reports, market fluctuations play a critical role in stock behavior.
Recent years have seen pronounced volatility within the opening minutes of trading sessions In response, we've implemented a strategy using 15-minute intervals as a benchmark.
Here’s how it works
If the first 15-minute interval shows a downward trend, we place a limit entry price at the opening price plus 1 cent.
For example, with an opening price of $140.00, our entry would be set at $140.01.
Conversely. If the first 15 minutes show an upward trend, our entry price is set at the close of that interval plus 1 cent.
For instance, if the interval opened at $20.30 and closed at $20.45, our entry would be at $20.46 or higher.
Some Real Past Examples
Example 1, when WIX reported earnings on 5/20, we adjusted our strategy accordingly.
The initial entry price was set at $152.00, but after observing a closing price of $157.47 within the first 15-minute bar, we adjusted our limit entry to $157.48, executing the trade at $157.72.
Subsequently, we sold at $173.00 the following day, resulting in a significant gain of 9.69%.
On another occasion involving GLBE, we encountered a downward trend in the first bar, prompting us to set the opening price at $34.44. Despite establishing a limit entry at $34.45, the trade did not execute as subsequent bars peaked at $34.45.
This innovative approach to trading EarningsTraders enhances stability and consistency by retaining winning trades and significantly reducing the number of losing trades.
As a result, we have effectively doubled performance while executing 30% fewer trades.
This means: More profitability and reduced commission costs.
SEE ALL OUR TRADES USING OUR 15 MINUTES FILTER
These results underscore the criticality of adhering to a systematic approach, always aimed at achieving profitability in the trading arena
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* Commission cost are not included
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