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If You Will Have $10,000 To Invest In N=30 Penny Stocks By Mid-December 2019 – Part I


I captured a data base of N=303 stocks trading between $0.0001 and $0.0001 between October 27, 2018 and December 21, 2018.

I am back-testing, running a “large sample” of N=30, randomly selected, to see how an equal-weighted portfolio would have performed.

I had n=3 “big hits” and quite a few doubles, triples and quadruples, and so on, in my large sample.

I am convinced that returns, using such an algorithm, will generate returns, easily, in excess of 100%, probably within 4 months.

The amounts I am using are 2.5M shares or $250 for each stock, so, about $8,000 total investment, with some variations.

I have already started building a portfolio, as described above.  I started Friday, with n=16 stocks, n=3 of which received those annoying partial fills, and have already established GTC buy orders for the remainder.  My list of stocks trading between $0.0001 and $0.0001 on Friday was N=297 stocks.  I used TDAmeritrade to generate this population.

This represents building a “large” sample “with replacement.”  You do not want to use my list; you want to build your own.  I am doing this early, and actually breaking my own rule, with real money, just to “stack the deck” against myself and to test if this methodology is entry date dependent.  I will do a replication of this methodology on December 21, 2019, effectively, doing two of these large sample portfolios.

You should NOT do this unless [1] you are very young and can recover from any losses or [2] you are over 60 years of age, but have sufficient net worth to take the risk.  As the title to this SABlog suggests, I will provide you with updates on how this is working.