Maximising a Spread Function?

[theGreek]

Hey guys.  Not sure if this is in the right forum, but here goes.

Say hypothetically I had a way of determining the spread of a stock the next day (only) based on previous data (say 3 months of data).  I wouldn't know the high/low, but could accurately predict the spread.

How would you maximize profits from such a tool?

[ShyTrader]

Hey guys.  Not sure if this is in the right forum, but here goes.

Say hypothetically I had a way of determining the spread of a stock the next day (only) based on previous data (say 3 months of data).  I wouldn't know the high/low, but could accurately predict the spread.

How would you maximize profits from such a tool?

Something like that would be interesting, but not very likely on pennies as they are to manipulated and to volatile.

Your question seems silly, the strategy of stock trading is buy low and sell high. You must mean something a little different in your question???

[ShyTrader]

Are you interested in sharing that concept?

[Dr PennyStock]

Hey guys.  Not sure if this is in the right forum, but here goes.

Say hypothetically I had a way of determining the spread of a stock the next day (only) based on previous data (say 3 months of data).  I wouldn't know the high/low, but could accurately predict the spread.

How would you maximize profits from such a tool?

The spread is the difference between the Bid and the Ask, how can you know that? It's impossible to know or predict it, and, hypothetically, even if you were able to know it, I don't see how you would take any advantage of it, trading these penny stocks or any stock, it's completly useless.

[theGreek]

Sorry I should clarify - spread is completely the wrong word. 

The *difference* between the high and low of day is the number I hypothetically have.  However, I would not know the HOD or LOD, just the difference between them.

i.e. today's stock price is $3.  The tool I have would predict tomorrow's HOD LOD difference is $2.  Tomorrow's actual stock price trades as such:

HOD - $6
LOD - $4

You don't know *when* the LOD will happen.  You just know that at some point the difference b/t HOD and LOD for that day is $2.  For the record, this does not have to be for penny stocks.  It would actually be more likely for high volume stocks >$5, with good volatility.

I'm developing software that creates technicals.  This 'difference' function just happens to be one of the easier things to predict about tomorrow's price.  This is in no way confirmed yet, I am just playing around with the software as I go along.. will update you on progress as I move on.

[Dr PennyStock]

Sorry I should clarify - spread is completely the wrong word. 

The *difference* between the high and low of day is the number I hypothetically have.  However, I would not know the HOD or LOD, just the difference between them.

i.e. today's stock price is $3.  The tool I have would predict tomorrow's HOD LOD difference is $2.  Tomorrow's actual stock price trades as such:

HOD - $6
LOD - $4

You don't know *when* the LOD will happen.  You just know that at some point the difference b/t HOD and LOD for that day is $2.  For the record, this does not have to be for penny stocks.  It would actually be more likely for high volume stocks >$5, with good volatility.

I'm developing software that creates technicals.  This 'difference' function just happens to be one of the easier things to predict about tomorrow's price.  This is in no way confirmed yet, I am just playing around with the software as I go along.. will update you on progress as I move on.

This is another story, yes, spread was a wrong word, ok, you can predict the difference between HOD and LOD, you gave the HOD - $6 and LOD - $4 example, but, it can also be HOD - $5 and LOD - $3, or HOD - $4.5 and LOD - $2.5, or HOD - $5.5 and LOD - $3.5 or am I wrong?

If your software can predict the difference between the HOD and the LOD but, also the LOD and the HOD, that would be a great tool, but, if only the first hypothesis, I still don't see any practice advantage.