Someone I work with has been working extensively on a Swing Trading model.
He has great financial experience from what I understand, but as he is in more of a management role and not in a day-to-day technical role, his programming skills might be just a tad or a step behind mine.
I have been watching him publish his short-term predictions, and his model is based on all kinds of things. I won't publish his secret sauce here, but he is using things that day traders tend to use, like RSI and Stochastics and such.
But, like my Financial Statement model - which tried to predict longer term buy-hold stocks, his wasn't holding water either through back testing and results. One problem is that everything looks great in a bull market (rising tides lift all boats). And, to quote Buffet, "only when the tide goes out can you see who is swimming naked". So these models need to hold up in BOTH upturns and downturns.
I have decided to work on a new stock picking model. I am not sure yet how much I will blog about the specifics of it. But it is also a short-term model.
Stay Tuned
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