Wednesday, February 6, 2008

The System

Where are my signals coming from? Why is my system different than charts offered at any place like Yahoo, BigCharts.com, StockCharts.com?

Well, it started with my desire to learn about Point and Figure. For me the best way to learn something is to do it myself - not just believe what everyone else writes.

A little about me... I am a software engineer by trade and enjoy just about everything to do with computers. I think in code and numbers all the time, sometimes to the frustration of others around me... I have worked in a number of environments that have included enterprise reporting and statistical number crunching.

When I started getting into P&F, I thought to myself - I could do this and make a cool little application that can create a chart for any stock that I wanted - that will help me learn what all these signals mean. At this point, I probably have about 1,000 hours invested in the development of my "little" application and don't plan to stop improving it anytime soon.

What can it do, you ask? While I can chart any stock that I hear about in the news, it's not the only thing that it can do. Every night, I download daily stock quotes from freely available data sources on the net. Then I sort through stocks that have been merged or have delisted to remove them (usually a couple a week). I then run my update process (think big reporting job) to calculate any changes in the stocks and their columns, which also sums up exchange and sector data. Once that is done, I run my historical reports, which searches for new signals in stocks, sectors and exchanges. I review the results and share them here on the net.

Why? Because through this exercise I will learn more as I share my insights with you and hopefully we'll all gain a better perspective for our investing.

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