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Old 10-31-2007, 09:19 PM
kimchi kimchi is offline
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Join Date: May 2006
Location: FU minbet
Posts: 1,246
Default Re: possible trading strategy?

[ QUOTE ]
no. i dont have the means or the desire to, but it would make sense for stocks to make most of their losses or gains directly after earnings. essentially the other 361 days of the year (minus weekends) are speculations based on the next earnings and the last earnings date.

[/ QUOTE ]

If this were your belief then testing it is the only thing you can do (unless it's been done). You could use OCO orders the day before earnings day. If a large move comes then you can ride the wave (up or down) once it starts by being stopped in in the right direction and your 'hedged' order is cancelled.

Whipsaws, retracements, gaps, and slippage etc. would play a huge part in whether you can turn a profit or not - hence the need for diligent testing.
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