Delphian has created nine, high probability trading strategies that are designed to use multiple confirmation signals to predict either a breakout, a pullback or a bottom in price. The high probability trades were developed and tested with the Delphian platform using a large basket of stocks with liquid options (over 300) and tested from Jan 2007 to Jan 2018. A win rate of over 75% qualifies for a high probability strategy. The four bullish strategies tested are as follows: long stock with a 5% profit, long call with a 25% profit, bull call spread with a 25% profit and a bull put spread with an 80% of max profit achieved.
Click on each of the Studies to learn more about them:
At the end of every trading day, the Delphian platform scans for the high probability trades and automatically provides a list of stocks that have met the required criteria. When these specific opportunities occur, the upward movement of the stock seems to happen relatively quickly. When back-tested, many of the studies reached or exceeded the profit target within 15 trading days. Since the stock prices can move rapidly off of the initial signals, it is prudent to place the appropriate exit order immediately after entry.
Figure 1. An example of a Study triggered on 2/28/2019
Each stock has individual characteristics so some symbols may not conform to the strategy model as well as others. To verify a specific stock performs well in the model, members can view the backtest results for each symbol. These results include the number of trades, the winning percentage and the profitability of all trade occurrences since 2007. Members can also modify the trading characteristics for the backtest to potentially optimize the win rate and profit percentage for each specific symbol and trading strategy.