I'm new to spread betting and trying to get a strategy together after reading Malcolms books. However, I find it difficult to find instruments to trade on.

I'm restricting myself to FTSE 350 stocks, while i'm finding my feet, that have ADX of 30 and above and that are also out/underperforming FTSE100 by 15%.

Using these criteria, I have 32 stocks left on my shortlist.

From these I am looking for 3-7 day pullbacks. I could only find 2 (both shorts).

This took around 3 hours to trawl through using sharescope.


Should I be expecting to find more trades than 2 with this criteria? It doesn't seem to be an efficient use of 3 hours to find just 2 possible setups.

Any help is appreciated

Mark

Hi Mark

Sometimes there are lots of setups and sometimes there are very few so patience is required in this respect.

Your filters are quite stringent so if you relax them you will see more setups. Perhaps think about reducing the outperformance/underperformance percentage.

Although this doesn't guarantee any better performance you should see more setups - try paper trading different setting first to get a feel for them.


Jon

Thanks jon.

Those 2 potential trades have turned into 5 in the space of 1 day from my same short list. Let's see how I get on!

Jon,

How did you get on? I've just started using these parameters too and am interested.

Nyintaka