Skip to main content

Posts

Showing posts from September, 2023

Strategies for Short-term Traders

Stockbee has spoken several times about Mark Boucher's Hedgefund Edge book, particularly the Appendix A in the back that discusses "Strategies for Short-term Traders" and "Trading Runaway Moves". This book is hard to come by. It was written in the late 90s, and I think, is pretty pricey on Amazon. In the section Boucher discusses a trading strategy focused on identifying and capitalizing on "runaway" stock or futures moves. The primary pattern in focus is the "flag within a flag pattern," which is observed in a flag trading range. Here are the key points summarized from the content: Flag Trading Range: This is a pattern where a stock or futures contract makes a strong run-up and then consolidates for a while, forming what looks like a flag, before breaking out again to the upside. The breakout from such a pattern can often result in prolonged moves higher, making it a potentially profitable trading situation. Mixing Time Frames: By mixing...