My take on American Bulls.com

Tags: Candlestick patterns, trading, information, BCON, CCOI, HITT, OMNI, RSYS, TRLG
14 Feb 5:38am

I have been watching and fooling around with Americanbulls.com for over a year now and have found it to be quite solid as a trading method.  The system is inherently much better with some stocks than with others.  For instance, it is almost worthless with NYSE stocks, but with many Nasdaq stocks it works much better.  I suspect that this is because NYSE stocks are heavily influenced by specialists, while NDAQ stocks are not. 

Never the less, the tags associated with this blog ( BCON CCOI HITT OMNI RSYS TRLG) are several that I have found that are quite accurate to trade by.  Most of the trading I have done here on bullpoo.com has been by using their signals. 

Their system is inherently flawed if you look at how much they have "made" by trading a specific stock for at least 2 reasons.  One - some of the stocks trade so thin that you would likely not be able to get a meaningful number of shares at a reasonable price.

Two - the price at which they claim to have bought a stock is sometimes not possible.  They state that when a signal has been tripped to buy, sometimes they use the closing price from the previous day as the price they bought the stock at, even though they could not have bought it at that price, since they did not "confirm" the buy until the next day, when the stock opened higher and never went under the previous close.

 

In any case, despite the flaws, the website seems to have worked quite well for me and that is what I am using (primarily anyhow) bullpoo.com for - to test it out...

Anyone else have thoughts?

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Don't know my way around this site, its purpose, concept, application, and as you can see from the empty first comment it's operation. Ran across your blog in a Google search, when I attempted to research the accuracy of American Bulls.
I've only just begun to disseminate their method, but so far have to agree 100 % with your comments. Naturally, one can expect a somewhat different result for each individual stock, but I find it intriguing that some equities are showing a 2 year gain of merely 20%, while others boast a 900%.
My preliminary testing showed more flaws in their claims. Besides the inability to buy the stock at their price, they also do not account for the commission cost. Back testing their result for CRM for instance, where they showed a gain of 964%, resulted in a 698% gain when commissions were applied to the trades.
As you pointed out, this would only be the true, if their entry and exit prices were attainable. Anyway, thanks for your excellent blog. I have not given up on the concept yet, and will try to refine a method that can be used. Will post it, if I can come up with a opportune refinement.
Posted on Sep 19, 2007 @10:24am
Hi CaliGray,

Thank you for voicing your observations- I am curious, did you find the Daily or Weekly candlesticks more useful to you in your trades?- Thanks.
Posted on Mar 2, 2008 @8:20am
I find the daily works better. Here's why. If you are using the weekly, and you buy the stock for the week (as they suggest you should), then it goes down all week and ends the week lower, you are then supposed to NOT have bought the stock for the week. So, you sell it for a big loss.
Conversely, if you say, "ok, I'll wait until the end of the week and if it still qualifies, I'll buy it then." What if the stock opens the week at 50, then, while you are waiting all week it goes to 70? Do you buy it up 40%?

These are the same problems as the daily system, it's just that a day is (obviously) much shorter than a week. In a day, if you know that external factors will take the market up all day, then you can buy pretty comfortably. The way they publish the info on their page as to how much they supposedly made with the stock is assuming that you only ever bought the stock when it qualified for their category "buy confirmed". This comes back to what I was talking about earlier.
The truth becomes that in real life, you have to figure out how to trade this. The best case is if the stock confirms its buy at the end of the day, so you can buy and get a price very close to their buy price. You see, they never post losses from buying early in the day, but then not having the stock "confirm" and having to sell it. That is the major inherent problem that is even more significant on the Weekly system.
Posted on Mar 4, 2008 @12:38pm
Thanks for your reply, I did also notice the daily often stating double the returns of the weekly, which reflects exactly what you had stated- I'll stick with the daily! The approach looks very interesting, and it does not imply having to trade every day, it just provides more accurate entry and exit points- Thank you again.
Posted on Mar 4, 2008 @9:39pm
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