Random System : Yes that's right, your eyes aren't deceiving you!

As I have mentioned before, I believe that, if your universe is full of up-trending stocks, then buying randomly should produce positive returns over time provided you trail stops sensibly etc etc

In an effort to prove this I will run a random portfolio alongside the Hitcher system using roughly the same rules.  The big difference is that instead of using the RSI, Volatility trigger I will generate a random number and buy that number stock, out of my list of stocks, as long as the initial risk is less than 10% of the price.  I will also only use the Hitcher hard stop rather than the two stop system.  Finally, my profit target will be the hard stop plus 4.5R


One thing is for sure - it will be a lot easier finding a stock to buy than plowing through the 150 - 200 odd charts this universe includes.

So, without further ado, the first four numbers out of the hat are 9, 12, 29 & 96


  Lets look at the charts

9th in the list is ARG - Closed at 7.28 Stop is 7.03

12th is AJA - Closed at 3.95 Stop 3.56 - just meets the stop loss criteria

29th CHC - Closed 4.07 Stop 3.78 (disclosure - I own shares in CHC)

Finally SYD - Closed at 4.22 Stop 3.92

All Charts courtesy of www.incredibleCharts.com

Well see how these open on Monday but don't forget the ...

Disclaimer - I am not a financial adviser, I am not suggesting you follow these signals.  I am only paper trading them myself.  If you take any action based on my blog you do so at your own risk.