Reason 10 for Using Stock Metadata

Reason 10 for using summary-level metadata statistics is to learn how to take advantage of clues found to trade stocks when day trading.

The main focus of reason 10 will be to present the conclusion of a very controversial topic, the use of stock metadata and its role in trying to time stock market trades.

From what has been presented up to this point, it seems pretty clear that money can be made using stock metadata for day trading. This can be done either by taking a long position (buying shares and then selling them for a profit) or by shorting shares (selling stocks not owned by you with the goal of buying them back later at a lower price).

The main requirement is to follow strategies that consist of specific day trading techniques whose aim is to mitigate risk. You’ve seen the proof of how this can be achieved using stock metadata. Analyzing all of the metadata for a stock helps to uncover trading traits found within this historical and statistical data.

Starting with reason #7, we reviewed some simple strategies using stock metadata found within the 15-Minute-Metadata-Detail report. Having this information in hand can help guide the buying and selling decision processes for people who believe they can time the market. These techniques illustrate strategies based on facts rather than emotions.

For reason 10, we will be looking at the metadata contained within the

• 15-Minute-Metadata-Summary report as illustrated in figure 10a below
  Click Here for a detailed description of the report layout
  Click Here to see this report with Ford Motor Company data

You might find it easier to follow the explanations given by having your own copy of these files populated with the exact same stock price data.
Click here to get them. You can also save yourself a lot of effort by using these files later on as templates for creating your own metadata reports.

Typically, each line of metadata appearing within this report reflects the last of all the twenty-six 15-minutes time periods for each day covered by the report, i.e., from 15:45:00 to 16:00:00.

Furthermore, reason 10 illustrates that this information, like its detailed equivalent, is divided into two main groupings – the long position summary and the short position summary.

As illustrated in figure 10a, each line contains these following three facets of metadata described below:

1. Results showing total profits of the best case scenario where a stock is acquired at the lowest price of the previous and subsequently sold at the higher price of the current period.
   
   Also shown is the Avg Profit per 15 min(68) which is calculated by taking the Total Profit for Day amount (1690), dividing that number by 25, and then rounding the number to the closest dollar value.
   
   For reason 10 we use 25 instead of 26 because the first time period of the day has no previous period when the stock could be purchased at the lowest price.


2. Next, taking the Total Value of these Matches for Day amount (770) and dividing that number the Count of Matches for this Day value (11) which is actually the count of entries appears in the Amt meeting criteria for 15 min for the day which are line entries found in the corresponding detail-level report.
   
   The result (70) appears under the Avg profit per 15 min for this Day heading which is then divided by the number of shares traded (1,000) in the transaction with the resulting per-share value (0.07) appearing under the heading title Avg Profit per Share per 15 min period.
   
   And finally for reason 10, the amount found under the Avg Profit per 15 min for this Day value (70) is compared to all entries found in the Amt meeting criteria for 15 min column and those entries that are equal or greater are counted up. The total of this count (6) is placed under the heading Nbr of Entries that are >= Avg Profit for Day.


3. And last but not least, are the median numbers, the final facet presented. The first number (80) appearing under the heading Median Profit per 15 min for this Day which is actually the median of the values appearing in the Amt meeting criteria for 15 min column. This latter number (80) is then divided by the total number of shares (1,000) traded with the result (0.08) shown under the column entitled Median Profit per Share per 15 min period.
   
   As shown for reason 10, the count (6) of all entries found within the Amt meeting criteria for 15 min column that are equal or greater than the number (80) appearing in the Median Profit per 15 min for this Day column will be displayed in the Number of Entries that are >= Median Profit for Day column.

Figure 10b shown below follows the exact same format except that it’s for the end-of-day results for transactions using stock metadata for trades executed by traders who trade short positions on the stock.

Using the first line of metadata shown, this would imply the following explanation:

1. Results showing total profits of the best case scenario where a stock is acquired at the lowest price of the previous and subsequently sold at the higher price of the current period.
   
   Also shown is the Avg Profit per 15 min (81) which is calculated by taking the Total Profit for Day amount (2030), dividing that number by 25, and then rounding the number to the closest dollar value.
   
   Again, for reason 10 we use 25 instead of 26 because the first time period of the day has no previous period when the stock could be purchased at the lowest price.


2. Next, taking the Total Value of these Matches for Day amount (590) and dividing that number the Count of Matches for this Day value (9) which is actually the count of entries appears in the Amt meeting criteria for 15 min for the day.
   
   The result (66) appears under the Avg profit per 15 min for this Day heading which is then divided by the number of shares traded (1,000) in the transaction with the resulting per-share value (0.07) appearing under the heading title Avg Profit per Share per 15 min period.
   
   And finally, for reason 10 the amount found under the Avg Profit per 15 min for this Day value (66) is compared to all entries found in the Amt meeting criteria for 15 min column and those entries that are equal or greater are counted up.
   
   The total of this count (5) is placed under the heading Nbr of Entries that are >= Avg Profit for Day.


3. Median numbers are the final facet presented, the first number (70) appearing under the heading Median Profit per 15 min for this Day which is actually the median of the values appearing in the Amt meeting criteria for 15 min column.
   
   This latter number (70) is then divided by the total number of shares (1,000) traded with the result (0.07) shown under the column entitled Median Profit per Share per 15 min period.
   
   And finally, the count (5) of all entries found within the Amt meeting criteria for 15 min column that are equal or greater than the number (70) appearing in the Median Profit per 15 min for this Day column will be displayed in the Number of Entries that are >= Median Profit for Day column.

Now at this point in time, you must be asking yourself:

“Why is any of this information presented by reason 10 relevant?”

Well the answer is simple. When reviewing the summary information for either the Long Position metadata or Short Position metadata, there are opportunities to spot key pieces of information like, for example, repeated similarities in the values displayed in a column.

It could be the value in the Avg Profit per share per 15 min Period column or what appears in the Count of Matches for this Day column that can then be used to confirm or alter an existing day trading strategy for the stock as well as to develop a new one.

The more you analyze this summary-level metadata, the more the opportunities you find to spot information that tells you something about the stock.

The first 9 reasons only touched on the information available from using stock metadata reports on companies being traded on the major North American stock exchanges.

Reason 10 with its descriptions of summary-level metadata provides more indications on what should be looked at when developing day trading strategies and techniques in an effort to improve one’s stock trading skills.

And you can tell by looking at the various stock metadata reports, more information is also available to be used for the stock trading process. To illustrate this point, here’s a breakdown of the type of metadata that can be accessed from the various reports:

• 15-minute Metadata Detail
  17 different line-level datapoints per day


• 15-minute Metadata Summary
  28 different summary-level datapoints per day


• 15-minute Hi-Low Counts
  208 detail-level datapoints and 8 summary-level datapoints


• Daily Historical Metadata Summary
  39 groups each sub-divided into 17 summary-level datapoints plus an additional group with 3 summary-level datapoints


• Daily Historical Metadata Detail
  48 detail-level datapoints with 23 grouping categories

Stuff in the Works

Currently work is underway on the following:

• Learning events to teach students how to use stock metadata
• User guides
• Conversion of the software application to use spreadsheet applications to create all stock metadata reports
• Planning of future seminars and workshops events

In the interim, please Click Here to go to the contact page. Sign up to be placed on our mailing list so that you can receive news updates as they occur.

Prior to completing this review of reason 10, here’s one final point to be made that’s very important. Before making any real-time investing or day trading decisions using stock metadata, it’s recommended to first try out the strategies and techniques described here on a virtual stock account.

There are a number of sites that offer free stock trading accounts with virtual money to use for your investing and trading pleasure. Find one and use it to practice your stock trading activities without the risk of losing any real money.

And that concludes the review of the 10 top reasons for using stock metadata . We trust the information presented to you will help make your stock trading experience a more enjoyable and profitable experience.

For those of you who would like to see the results of using stock metadata, please continue reading. Several months ago, I opened a virtual stock account at updown.com to illustrate the progress of my trading activities. This account was initially funded with $1,000,000 virtual dollars. Click here to see the trading results achieved.

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