Friday, January 20, 2012

My Chartgame Records

Chartgame had played an incredible role in helping me solve the riddle of the stock market. The advantage of the game is that it lets us try out our ideas on real data (albeit historical) in a virtually real time manner accelerating days into seconds. This accelerated mode actually takes us into accelerated learning phase by letting us experience stock price movements very fast. In reality as it takes weeks to play with each stock, the lessons learnt from each transaction lose their weight by the time we start another trade. If one is not a day trader, but pre-occupied with another profession, trading takes a backseat. Despite years of experience it can still look like a mystery as to what makes the individual stocks move.

In the first two years of my stock market operations I had few moments when I felt I found the best way to bigger profits. The white candlestick idea was one such moment. After looking at many stock charts and by also emulating real time experience by loading multiple charts differing in their last day, I noticed that a white candlestick indicates the strength and two such consecutive ones indicate possible upside in the following days. Stop loss was there for the worst case possibilities. But I had never done an analysis to see how effective stop losses can be or what happens if stop losses become random because of various possibilities. This had caused me lose a great deal consistently that too during the worst ever meltdown period in 2008.

Everytime I got a new idea I used to focus on the postive sides of it and ignore any downside risks. But Chartgame shattered all of my myths and hope that there must be some strategy to consistently beat the market. Stock price movements turned out to be totally random madness. All kinds of possibilities that one can think of have showed up after playing one stock after another. By accelerating the experience (an experience for those who have learned up to feel this game as much as a real experience) it helped me learn those things that would have taken decades to learn. Once can waste decades of life, just to learn that stock market is simply a random game. But from this experience I realized what it takes to succeed in this game and also decided never to suggest direct investments in stock market for the innocent, ignorant and the weak-hearted.

Thanks to its creator Matthias Wandel, we now have the opportunity to evolve our trading habits without spending money. It is very useful to practice despite not mimicking the intraday stop orders that are possible in real trading.
b>My Chartgame Records

When we play at we should note down the code in the tail of the URL which has so far been (since 2008) 6 characters long. This helps us review the performance later on, not only giving an overall summary of total gain over total number of traded days comparing with buy & hold performance but also including viewing details of the trades executed in each individual stock, date & price along with the stock chart highlighting the period of play.

My best record is the one where my capital plunged from $10,000 to $90 but after that I had applied 5/9 golden rules to return back upto $11,387. There is a beauty in this particular record if one looks at the distribution of gains and losses from $90 after Marsh & McLennan Companies, Inc.  (MMC). Its code is qwekfw. Below is the full URL:

My latest game is recorded at :

The older ones: (played last week)

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