Stock System

[jdoe]

By entering the 2 + 2 trading competition is has got me to thinking about a system to use. I thought I would post my ideas and let you all poke at it.

Say I start with $15,000 no margin

Lets say I have a STOCKBOT to follow all of my commands for me.

I am going to tell my STOCKBOT: at 10:30 pick a random stock with high volatility and volume then randomly decide to take a short or long position.

I am next going to tell the STOCKBOT to stop-loss cover if the position puts me in the red by L%

I am next going to tell the STOCKBOT to run a basic TRAILING STOP PROGRAM if the position puts me in the green by P% to lock in profits.

Close out the position at the end of the day.

Questions:

What should L% be?
What should P% be?

If L < P and pure random forces are at work here wouldn’t this system be +EV?

All comments welcome.

Thanks,
Jdoe