K.I.S.S. Formula

13% return in 6 days (Carpe9Diem)

Ok everyone here it is. I started using this formula Dec 16, 1998 and it has had a 13% return. It is based on Namvet34 stochastic settings posted in message 273. USE THOSE SETTINGS WITH THIS FORMULA ,THEY WORK!! This is more of a short term formula . I don’t hold stocks much more than a week. In fact in the 6 days I have tested this I have bought and sold 5 stocks. I am still holding 2 of the 5. The list of stocks that generated by the formula change every day so if you find one you that you like put it in a watch list because it will most likely be gone the next day. Also, view the

stocks by Price Per Share, it makes the list more manageable. Here is the stock I bought today: JRC it went up 1.25$. This is a simple formula , I created it using the K.I.S.S theory, Keep It Simple Stupid!! I thank my dad for that. Also for those people that dont think 13% is alot consider this, if you continued to make 13% of your total balance every 6 days for a entire year on a 10,000$ investment you would end up with over a million (thats 1,000,000 )by the end of the year. That averages out to about 2% gain per day on total balance for the 250 trading days. I checked the math twice, it is right. choose you stocks carefully. Take the time to research and learn how to read the charts and you will be a profitable investor. Here it is:

K.I.S.S. objective(Carpe9Diem)

My objective when using this formula is to find stocks in a short term rally... here are some examples of stocks that have been in short term rallys since dec 16.. THOR, VARL, JRC, RTWI, PHYC, DSTM, HDIE.. All of which came from the KISS FORMULA and all of them great short term money makers.. Hope this helps!!

Original K.I.S.S. formula:(Carpe9Diem)

V >= V1*1.5 AND TSV1 > TSV1.2 AND STOC8.4 > STOC8.4.2 AND STOC26.9 >STOC26.9.2 AND AVGC3 > AVGC3.2

STOC12.5 TSV1 > TSV1.2 AND STOC8.4 >STOC8.4.2 AND STOC26.9 > STOC26.9.2 AND AVGC3 > AVGC3.2 AND V >= (1.5 *AVGV42.1) AND (AVGV42.1) > 1000 AND C < 25

Stochastic Settings:(namvet34)

Use these settings with K.I.S.S.

I rely heavily on stochastic settings and although they aren't 100% reliable, they are a good indicator for me. I set my # 12 tab up like this and I never touch this one...never! On the top chart, I set up 2 moving averages. I use a 3 and a 5 day moving average because I want to know what's happpening NOW! My middle chart setting is a stochastic chart with the following settings: 26-9-12 simple. My bottom is also a stochastic with these settings: 8-4-6 exponential. I use the bottom stochastic to alert me as to when a stock is beginning to move (the fast line breaks up through the slower moving line. At this point the 3 day moving average will be just about ready to cross the 5 day moving average on the top chart. I then keep an eye one the middle stochastic chart. When the fast moving line crosses the slow moving line the stock will already be in an upward progressing. You won't catch the beginning of a move but you'll have confirmation that the stock is moving up. Once I'm in the stock I then begin to watch the bottom stochastic chart again. When the fast line begins to cross down through the slower moving line I'm getting ready to bail out. It's not exact but its the closest thing I can find that seems to work relatively well. Let't take this one step further. Right now I have my program open and the stock ASF is on my screen. (I didn't buy this one, it just happens to bo on my screen right now.) If you set you chart like

I have mine, then I want you to turn on your pointer and place it on 10/15/98, my signal point on bottom stochastic. Notice the relative position on the price chart and how the 3 day is about to cross the 5 day. Next place your pointer on 10/21/98. This is where I would enter. Now go back down to the bottom stochastic and place your pointer on 10/31/98. This is the point where I consideer getting out since the upward move is breaking down. Its not a perfect system but its the best I can come up with. I've put countless hours of experimentation and testing into these settings. I hope you all play around and try to refine them further. If so, be so kind as to share your results with the rest of us. This isn't foolproof either. When it works, it works well. When it doesn't, well, it just doesn't. So be careful. Let me know what you think.

To Everyone:(Carpe9Diem)

For those people using the formula I posted, DON’T pick a stock just to be picking one. It is possible for the list to generate no good stocks to buy.If you are not totaly confident with what you see or there is a hint of doubt don’t buy .You can not lose that way and there will always be others to buy tomorrow. Remember you will never go broke by taking profits!!! Before I make a trade I ask myself how am I willing to risk to make a profit. If the risk is good then I make it if there is even a hint of doubt I don’t. I never ask myself how much money am I going to make by making this trade. If you do that you will lose more times than not, I have seen too many people, myself included, hold too long and lose the profit they had trying to get that extra 1/8 of a point or when the stock starts to drop they hold on to it not wanting to take a loss thinking it will go back up. But it does not. You are going to lose some of the time. If it looks bad get out and take a small loss compared to a huge loss later. The best traders in the world are successful only 75 to 90% of the time. Like the old song goes "know when to hold them, know when to fold them". This philosophy has saved my neck more than once!!

Working with K.I.S.S. (anthonymdavis)

I have taken the KISS formula and added it into a scan along with some other stuff to limit the number of stocks to view. Sure I limit myself from ALL the stocks available but then, who has the time to check out 880 stocks at a time?

This is what I have done: I made a personal criteria called "increasing Volume for 3 days" (Somebody else's idea here earlier.)

V>V3

This is what I use to sort the scan. Then, I took the KISS formula and put into another Personal Criteria called "Keep it simple"

Finally, I made an easy scan called "Simple Scan". This includes the Keep it Simple (KISS formula),

Earnings % of sales for 1 yr = 50-99 (rank)

EPS change for 1 yr = 50-99 (rank)

RSI Today = 75-99 (rank)

BOP = 75-99 (rank)

I know this is no great discovery as I have used alot of other's ideas but this cuts down the scan from 800 down to about 28. You may want to do different but this works for me (for now).

Reducing KISS Numbers:(JIM_P64)

I tried a scan using KISS alone tonight and came up with 517 stocks instead of he 1700 you got. I have no idea what is causing the discrepancy. The scan I am currently using (they seem to change every day as I learn more on this site)has stochastics, price/share, volatility, and volume filters. I ended up with 18 stocks in my scan tonight. If you're interested in trying what I have, I'll give you the details. Besides the KISS formula as one personal criteria, I use a stochastics criteria

(STOC8.4<40 AND STOC26.9<40)

Those two together reduced my number of stocks to 67. I then used :

PRICE/SHARE (30 TO 97 RANK), VOLATILITY (15 TO 99 RANK), and VOLUME 5 DAY (40 TO 95 RANK).

These last three filters reduced my number of stocks to 18.

Give it a try and see if you come up with anything intresting. Im not aware of any way to backtest using TC2000. I have Omnitrader for backtesting, but I don't use it very much because I find it confusing. You can get buy signals and sell signals on the same stock, depending on which parameters you use. jim

Variation:(Carpe9Diem)

I added a slight variation that is not in post 647 here is the new formula it gives you a little better list and gets rid of stocks with volume less than 15,000...and the 150 is right that is how the program reads volume.

V >= V1 AND TSV1 > TSV1.2 AND STOC8.4 > STOC8.4.2 AND STOC26.9 >STOC26.9.2 AND AVGC3 > AVGC3.2 AND V >= 150

K.I.S.S. suggestion:(ejr39)

In the updated KISS formula (message 1060), a daily volume of 15,000 is a thinly traded stock. For more liquid stocks, trade stocks with a daily volume > 100,000 shares. Rather than limit volume in the KISS (Personal Criteria) formula, create an Easy Scan that includes the KISS formula.

From Easy Scan's Technical Library add:

volume 1-day - H (value) 1000(00) to max

volume 5-day - H (value) 5000(00) to max

volume 90 day (rank) 75 to max

The volume criteria insures liquidity (supply/demand). The bid/ask spread is usually less for a liquid stock.

(If you like, add Optionable Stocks from Easy Scan's General Library to remove lower priced stocks and IPO's)

K.I.S.S. suggestion:(ejr39)

Use the volume formulas from the Gary B Smith tactics (message 1004), Smith is looking for the volume "pop" that precedes a major price movement.

My variation on the KISS formula:

TSV1 > TSV1.2 AND STOC8.4 > STOC8.4.2 AND STOC26.9 > STOC26.9.2 AND AVGC3>AVGC3.2 AND V >= (1.5 * AVGV42.1) AND (AVGV42.1) >= 1000

Try it you'll like it - reduces the manual review process.

K.I.S.S. suggestion:(Horsthh)

EASY SCAN:

C > 8

KISS*

RSI today = 80 to 99(rank)

BOP value today-H = 80 to 99(rank)

Volume(Dollars) 1 day high = 80-99(rank)

*Personal Criteria Formula:KISS

STOC12.5 TSV1 > TSV1.2 AND STOC8.4 > STOC8.4.2 AND STOC26.9 > STOC26.9.2AND AVGC3 > AVGC3.2 AND V >= (1.5 * AVGV42.1) AND (AVGV42.1) > 1000 AND C >25

K.I.S.S. suggestion:(Horsthh)

EASY SCAN:

C > 8

KISS*

RSI today = 80 to 99(rank)

BOP value today-H = 80 to 99(rank)

Volume(Dollars) 1 day high = 80-99(rank)

*Personal Criteria Formula:KISS

STOC12.5 TSV1 > TSV1.2 AND STOC8.4 > STOC8.4.2 AND STOC26.9 > STOC26.9.2 AND AVGC3 >AVGC3.2 AND V >= (1.5 * AVGV42.1) AND (AVGV42.1) > 1000 AND C > 25

K.I.S.S.(robkipp)

I entered your KISS scan and it looks good. I added BOP>30. Will 'tweek' it some more, but it does offers some nice picks to look at

KISS 2.8 Beta(Carpe9Diem)

Been along time since I posted. Its good to still see some familiar Names. EJR39 , babynuke, cprastch,poppejans. Been testing a formula since march and I am pleased with the results! Started testing on march 5 and have not had a losing watchlist yet!(% wise) Oldest watchlist I have is from March 5 has a current % gain of 11.65% with a high of 24.04% with 80 gainers and 74 losers(current) and 111 gainers and 43 losers(at its peak).(this is my best watchlist for a % high, although several have come close.) The worst watchlist I had was at its peak only had a 5.82% gain and is currently at 3.13%. Considering what the Markets have been through as of late thats not to shabby. This is my beta formula. I am currently testing one that has produced better results but want to test it for a another month or so before posting to make sure that it is up to spec. Hoping someone can add somthing to it to make it better. For those were not around for the original KISS formula, (it was posted in the pre 1000 area) KISS stands for: Keep It Simple Stupid! The more complicated you make it the more things that can go wrong!!

Note: all watchlists were held at least 15 days before results were recorded. This gives time for the stocks to run there course and filters out the occassional bad weeks. One more thing. Only tested this on NASDAQ stocks. Why?? I prefer to trade them.

KISS 2.8 Beta

(STOC26.9 + STOC26.9.1 + STOC26.9.2) / 3 > 60 AND C > ( C15 * 1.1)AND (V1 + V2 + V3 + V4 + V5) / 5 >800

KISS 2.8(babynuke)

Hugh,

Had the same problem. Split off the volume from the pcf and this gave me 784 from all stocks. Wrote the volume as a separate pcf but got zero. Rewrote the pcf as AVGV5. Created EasyScan with first half of formula, NASDAQ only stock, and AVGV5 pcf...set range selector to Value and got as close to 800 as possible (819.2). This gave me 223 stocks. The 3 examples Carpe9diem gave all tested true with the complete pcf as posted. I just updated to the .0050 version.

The system seems to prefer individual formulas for pcfs and then combining them in EasyScans instead of using the AND operator in the pcf.

Ty