When we began designing our algorithm, we picked a relatively arbitrary selection of stocks to use for testing. These are stocks that we felt would likely have enough volatility each day to create patterns so that we could test the algorithm’s ability to detect the good ones.

Once our algorithm was running daily, we thought it would be a good idea to continue tracking its performance with these same stocks based on the alerts it was providing.

The methodology we chose was to track performance is based on "blind trading", meaning what would happen if you simply traded based on what the algorithm told you. No looking at the patterns and evaluating if a pattern looks good or considering what the stock had done earlier in the day.

Each trade was made at the first point the price hit the buy target, or higher, a trailing stop was used to sell at the stop target or allow it to continue higher and sell if it moved back down 0.25%. A stop-loss was also used to sell at the lowest price in the pattern. If it hit neither the sell target nor the stop-loss, it was simply sold at the last price of the day for day trading.

Our current daily average gain/loss on day trading alerts for these stocks is 0.19% (YTD).

For swing trading, we have been monitoring the entire S&P 500 and our current daily average gain/loss is 1.12% (YTD)

The stocks we selected for our evaluations are: