(1) Trading Penny Stocks (2) Joining Discretionary, Quant. Techniques for Emini

Agenda:

6:30 - 7:30 pm Day Trading Penny Stocks (Alan Chen)

7:30 - 8:30 pm Combining Discretionary and Quantitative Techniques (Curtis White)

(also restaurant get-together after the meeting - see end below)

(1) Day Trading Penny Stocks (Alan Chen)

Alan is one of our members and we asked him to talk about his trading of penny stocks, after he mentioned it at a recent meeting, since penny stocks seem to offer a lot of opportunity for profit with their high volatility and sensitivity to sentiment and news flow, as well as macro trends.

Alan will cover Strategy, Screening Process, and Intra-Day Tactics, for trading penny stocks.

Alan's trading has a bias toward short side trades. For background , he recommends the book by hedge-fund manager Timothy Sykes, who made millions and is often the #1 ranked trader out of 45,000+ on Covestor.com.

Some of his strategy involves looking to short over-valued stocks, but he will also buy stocks in anticipation of a potential short squeeze. Identifying and exploiting "pump and dump" moves is one goal.

Screening can be based in part on Yahoo Finance, looking through large percentage gainers for certain chart patterns and ranking price moves by volume. Following Twitter selectively can have a role too.

Intra-day tactics include identifying setups, and such concepts as "Morning Panic" and "Afternoon Fade."

Alan will illustrate his talk with some trades shown in detail using Think or Swim's Replay capability.

(2) Combining Discretionary and Quantitative Techniques (Curtis White)

Curtis is a member of our group who we knew has an S&P / Emini trading strategy up on Collective2 at https://predictor.coll... (https://predictor.collective2.com/) , so we asked him to talk about his work. Collective2 offers verified track records based on real-time trade signals, without requiring real trading, and so the results, which are very promising to say the least, are simulated - Curtis is not trading his own money at this point.

Curtis also runs a blog at https://themarketpredi... (https://themarketpredictor.com/blog/) . I find it very worthwhile reading.

He is applying the philosophy of steeping himself deeply in a limited number of markets - in particular, the S&P 500 via the Emini. Curtis suggests becoming intimately familiar with one's chosen market, and thus acquiring the ability to have "market read" good enough to allow discretionary trading. Then, transform the patterns you have learned to observe into mechanical trading systems and test them comprehensively.

The first part pf the talk will be on learning to read the tape of the market, and the second part on trading systems, back- and forward-testing them, and integrating them with discretionary trading.

Curtis will also touch as time allows on inter-market analysis, out of sample testing, and monte carlo methods.

Post-Meeting Get-together

After the meeting ends around 8:30 p.m., we will adjourn for continued informal discussion amidst food and drink, again at The Village Draft House (https://www.villagedra... (https://www.villagedrafthouse.com/)) which is approximately 0.2 miles from the Library at 428 Daniels Street (https://tinyurl.com/34... (https://tinyurl.com/347vxsb)). We expect to be at The Draft House from 9:00pm until at least 11:00pm. Please note that each individual is responsible for all food and drink ordered.