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When to buy/sell

How do I follow the model and buy or sell the market?

One of the issues we have found with algorithm investing is the actual transaction. The model is based on the end of the day price which can create problems if the market is moving back and forth during the last 2 minutes of the day. Let's review a few options available to you in order get the same results.

Manual Timing Method

The manual method requires you to place the stock transaction yourself as close to the end of the day as possible. While this is not an ideal solution, it is the easiest to implement. We usually shoot for the last 15 minutes or so depending on which way the market is trending.

End of Day Trading

Some stockbrokers allow you place an “End of the Day” transaction in order to catch the last price of the day. Another term for this type of order is a “Market-On-Close” order type. Not all brokers have this option, so look around.

Next Few Days

Based on the model’s historical performance, around 70% of the transactions can get a better price after the initial buy signal. Oscillators rarely get the peaks and valleys perfectly, which means there is a better price coming. While not 100%, you can get a better price much of the time by waiting to see where the momentum takes us.

Using Limit Orders

Another idea is to partially buy on the day of the signal. For example, you could setup a limit order for 50% of your investment capital and then setup additional orders for the remaining 50%. You can also setup limit orders for the “Strike Price” which is found on the Advanced dashboard.