Well despite doing very well using this strategy on Friday, it failed miserably today. Ultimately, with it too, the weakness here is unexpected volatility. The strategy requires stocks to remain at least in a reasonable range. So picking a stock with typically a ten-cent range over a day is ideal. The problem is... volatility in the market as a whole is increasing which means these stocks are more likely to break their patterns. And break they do.
So today, once again, I saw the office flat overall. A very few people were quite green, and the rest of the office got scraps or took a substantial hit. Ultimately it comes down to this: Most of the best traders in our office are no longer pulling down a substantial income even though a couple are still well above the median; and I need a paycheque. So... as glad as I am that I had the opportunity to try, the market is just shifting too much from a day-trader's game to reasonably expect any kind of long-term stability. And so I write my resignation letter and return to the undesirable task of trying to convince employers all of what a physicist is capable of.
