# SK Small Caps Q&A **URL:** \ **Category:** Trading and Markets\ **Created:** [August 20, 2024, 11:18am UTC](https://forums.collective2.com/t/sk-small-caps-q-a/16590 "2024-08-20T11:18:20Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![SeanKelly11](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/seankelly11/32/19323_2.png) [@SeanKelly11](https://forums.collective2.com/u/SeanKelly11)\ **Post date:** [August 20, 2024, 11:18am UTC](https://forums.collective2.com/t/sk-small-caps-q-a/16590/1 "2024-08-20T11:18:20Z")
I’m starting this thread for anyone who has questions or wants to discuss my trading system on C2. I’ve received several calls on my cell phone, which I posted in the social section, and while I’m happy to take calls, I’m not always available. If you can, texting is usually better since I eventually get to them. That said, I do prefer phone calls, though I rarely check voicemail. Many people ask how I trade this system, so I’ll address that first. In my newsletter, _The Sean Kelly Trading Edge_ on Substack, I clearly outline all the rules so you can follow the system yourself. It’s not complicated—just an edge I discovered through years of research using Zacks Research Wizard. If you have questions that others might also be wondering about, feel free to post them here, and I’ll do my best to answer. ---
**Author:** ![SeanKelly11](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/seankelly11/32/19323_2.png) [@SeanKelly11](https://forums.collective2.com/u/SeanKelly11)\ **Post date:** [August 20, 2024, 11:20am UTC](https://forums.collective2.com/t/sk-small-caps-q-a/16590/2 "2024-08-20T11:20:38Z")
Sorry, forgot the link: [https://theseankellytradingedge.substack.com/](https://theseankellytradingedge.substack.com/) ---
**Author:** ![SeanKelly11](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/seankelly11/32/19323_2.png) [@SeanKelly11](https://forums.collective2.com/u/SeanKelly11)\ **Post date:** [August 21, 2024, 12:48pm UTC](https://forums.collective2.com/t/sk-small-caps-q-a/16590/4 "2024-08-21T12:48:33Z")
I’ve been using the Research Wizard software for quite some time, and I’ve learned that the key to a successful, profitable, and sustainable strategy is thorough testing. That’s why I’m trading it here on C2 as a stand-alone strategy. The most encouraging part? It’s consistently performing just as well in real-time as it did in backtesting! ---
**Author:** ![SeanKelly11](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/seankelly11/32/19323_2.png) [@SeanKelly11](https://forums.collective2.com/u/SeanKelly11)\ **Post date:** [August 21, 2024, 12:51pm UTC](https://forums.collective2.com/t/sk-small-caps-q-a/16590/5 "2024-08-21T12:51:09Z")
It’s not perfect—despite being hedged, there will be times when it significantly outperforms and times when it doesn’t. That’s just the nature of trading. The key is to stay focused and stick to the plan. ---
**Author:** ![SeanKelly11](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/seankelly11/32/19323_2.png) [@SeanKelly11](https://forums.collective2.com/u/SeanKelly11)\ **Post date:** [August 21, 2024, 6:42pm UTC](https://forums.collective2.com/t/sk-small-caps-q-a/16590/6 "2024-08-21T18:42:14Z")
New post on my newsletter: > **[Trading the Smart Way: Harnessing Strength Over Chaos](https://theseankellytradingedge.substack.com/p/trading-the-smart-way-harnessing?r=2ubwr5&utm_campaign=post&utm_medium=web&showWelcomeOnShare=true&triedRedirect=true)** > > Why Simplicity Beats Day Trading Madness—And How to Use It to Your Advantage ---
**Author:** ![SeanKelly11](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/seankelly11/32/19323_2.png) [@SeanKelly11](https://forums.collective2.com/u/SeanKelly11)\ **Post date:** [August 23, 2024, 1:16pm UTC](https://forums.collective2.com/t/sk-small-caps-q-a/16590/7 "2024-08-23T13:16:05Z")
Good morning, friends. Here is the latest post on Substack. > **[A Welcome to My Trading Community: Maximizing Your Edge](https://theseankellytradingedge.substack.com/p/a-welcome-to-my-trading-community?r=2ubwr5&utm_campaign=post&utm_medium=web&triedRedirect=true)** > > To all my free subscribers, I want to extend a warm welcome and assure you that you'll find plenty of interesting and valuable information here. ---
**Author:** ![SeanKelly11](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/seankelly11/32/19323_2.png) [@SeanKelly11](https://forums.collective2.com/u/SeanKelly11)\ **Post date:** [August 24, 2024, 1:09pm UTC](https://forums.collective2.com/t/sk-small-caps-q-a/16590/8 "2024-08-24T13:09:52Z")
Here the latest: > **[Planning for Retirement?](https://theseankellytradingedge.substack.com/p/planning-for-retirement?r=2ubwr5&utm_campaign=post&utm_medium=web&showWelcomeOnShare=true&triedRedirect=true)** > > Don’t Let the IRS Be Your Biggest Beneficiary ---
**Author:** ![InteractiveAssets](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/interactiveassets/32/13320_2.png) [@InteractiveAssets](https://forums.collective2.com/u/InteractiveAssets)\ **Post date:** [August 25, 2024, 8:51pm UTC](https://forums.collective2.com/t/sk-small-caps-q-a/16590/9 "2024-08-25T20:51:43Z")
You sell insurance or have, right? What’s the typical interest rate on those loans these days? I honestly don’t know. “With an IUL, your money grows tax-deferred, and you can access your cash value through tax-free loans.” ---
**Author:** ![SeanKelly11](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/seankelly11/32/19323_2.png) [@SeanKelly11](https://forums.collective2.com/u/SeanKelly11)\ **Post date:** [August 25, 2024, 11:11pm UTC](https://forums.collective2.com/t/sk-small-caps-q-a/16590/10 "2024-08-25T23:11:30Z")
The loan interest rates are capped at 5%, while the internal cash value is indexed to the S&P 500 or a similar index. Currently, the cap on potential earnings is 13%, with a floor of 0%. This means that in a strong market, you could earn up to 13%, and in a down market, your earnings would simply be 0%, not a loss. For example, if you receive a 9% credit while the loan interest is at 5%, you would actually gain on the money you’ve borrowed. I hope this clarifies things for you—your question suggests you already have some knowledge on the topic. Wishing you all the best. ---
**Author:** ![SeanKelly11](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/seankelly11/32/19323_2.png) [@SeanKelly11](https://forums.collective2.com/u/SeanKelly11)\ **Post date:** [August 25, 2024, 11:13pm UTC](https://forums.collective2.com/t/sk-small-caps-q-a/16590/11 "2024-08-25T23:13:58Z")
If you’re interested in learning more, I highly recommend watching a short and very informative video. You can check it out here: [http://seankelly716.com](http://seankelly716.com). ---
**Author:** ![SeanKelly11](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/seankelly11/32/19323_2.png) [@SeanKelly11](https://forums.collective2.com/u/SeanKelly11)\ **Post date:** [August 26, 2024, 11:58am UTC](https://forums.collective2.com/t/sk-small-caps-q-a/16590/12 "2024-08-26T11:58:00Z")
I have a couple of new posts out. This was released yesterday. > **[Maximize Your Forex Trading Success with This Simple Scoring System](https://theseankellytradingedge.substack.com/p/maximize-your-forex-trading-success?r=2ubwr5&utm_campaign=post&utm_medium=web&triedRedirect=true)** > > Are you looking to take your Forex trading to the next level? ---
**Author:** ![SeanKelly11](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/seankelly11/32/19323_2.png) [@SeanKelly11](https://forums.collective2.com/u/SeanKelly11)\ **Post date:** [August 26, 2024, 12:00pm UTC](https://forums.collective2.com/t/sk-small-caps-q-a/16590/13 "2024-08-26T12:00:52Z")
I never even knew who this was until I did the research! > **[Finding Your Edge: Lessons from Trading Legend Stanley Druckenmiller](https://theseankellytradingedge.substack.com/p/finding-your-edge-lessons-from-trading?r=2ubwr5&utm_campaign=post&utm_medium=web&triedRedirect=true)** > > How Identifying and Leveraging Your Unique Strengths Can Build Lasting Success in the Markets ---
**Author:** ![InteractiveAssets](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/interactiveassets/32/13320_2.png) [@InteractiveAssets](https://forums.collective2.com/u/InteractiveAssets)\ **Post date:** [August 27, 2024, 4:38am UTC](https://forums.collective2.com/t/sk-small-caps-q-a/16590/14 "2024-08-27T04:38:50Z")
Have you backtested this system? If so would you be willing to share the results? [A Simple Scoring System to Identify the Best Nasdaq 100 Stocks to Go Long or Short](https://theseankellytradingedge.substack.com/p/a-simple-scoring-system-to-identify?r=2ubwr5&utm_campaign=post&utm_medium=web&triedRedirect=true) ---
**Author:** ![SeanKelly11](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/seankelly11/32/19323_2.png) [@SeanKelly11](https://forums.collective2.com/u/SeanKelly11)\ **Post date:** [August 27, 2024, 11:10am UTC](https://forums.collective2.com/t/sk-small-caps-q-a/16590/15 "2024-08-27T11:10:26Z")
I haven’t backtested this specific scoring system yet, but it’s very similar to the strategy I already trade on C2, which combines price and fundamental analysis. This system, however, emphasizes technical indicators. I’m optimistic that it would perform well. If you have coding experience, backtesting could reveal its potential. When I backtested SK Small Caps, the results were impressive enough to integrate into my own trading. To ensure accuracy, I began trading it on C2 for “pure” results. I believe applying the same approach to this system would be a wise move. ---
**Author:** ![InteractiveAssets](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/interactiveassets/32/13320_2.png) [@InteractiveAssets](https://forums.collective2.com/u/InteractiveAssets)\ **Post date:** [August 28, 2024, 12:10am UTC](https://forums.collective2.com/t/sk-small-caps-q-a/16590/16 "2024-08-28T00:10:05Z")
I was interested in trying to simulate atleast some of it with Research Wizard. I did take one attempt but am not getting good results based on this screen. This is using the DBCMHIST database and following the instructions here from Zacks for moving average backtesting. [Research Wizard](https://www.zacksrw.com/tipsandtrick-num001.html#:~:text=Backtesting%20Moving%20Averages,database) This doesn’t have all the screen info you had and I had to use weekly sma rather than daily, but I tried to approximate with a 4 and 10 week SMA, making sure the price was above each SMA, and each SMA was higher than the previous week. I didn’t do the PSAR or 13 EMA yet. I also didn’t require specifically NASDAQ since the RW bases that on current membership (not historical). But based on this can you see where it is going wrong? Why are these results so bad? Here is a screenshot of the screen. I had to do two screenshot to fit all lines. Some of the screens such as price greater than zero are just there so that when I do a screen I can spot check the values it is producing against charting software etc. ![image](https://canada1.discourse-cdn.com/flex028/uploads/collective2/original/3X/5/3/53eff891012adfa2b47e390b9feb570d8e756cf0.png) ![image](https://canada1.discourse-cdn.com/flex028/uploads/collective2/original/3X/2/6/269d768135eb10f3b09d4c00994040f405e20b95.png) ![image](https://canada1.discourse-cdn.com/flex028/uploads/collective2/original/3X/6/f/6f1050a178c15a8fcd977b28183003cfb41ef321.png) ---
**Author:** ![SeanKelly11](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/seankelly11/32/19323_2.png) [@SeanKelly11](https://forums.collective2.com/u/SeanKelly11)\ **Post date:** [August 28, 2024, 12:35am UTC](https://forums.collective2.com/t/sk-small-caps-q-a/16590/17 "2024-08-28T00:35:34Z")
I’m not sure I would use Research Wizard for a technical backtest. I use it for tests that use fundamental analysis. ---
**Author:** ![SeanKelly11](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/seankelly11/32/19323_2.png) [@SeanKelly11](https://forums.collective2.com/u/SeanKelly11)\ **Post date:** [August 28, 2024, 12:36am UTC](https://forums.collective2.com/t/sk-small-caps-q-a/16590/18 "2024-08-28T00:36:01Z")
Here’s the latest! > **[Day Trading – Are You Betting on the Right Horse?](https://theseankellytradingedge.substack.com/p/day-trading-are-you-betting-on-the?r=2ubwr5)** > > So, you think day trading is your ticket to quick riches, huh? ---
**Author:** ![InteractiveAssets](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/interactiveassets/32/13320_2.png) [@InteractiveAssets](https://forums.collective2.com/u/InteractiveAssets)\ **Post date:** [August 28, 2024, 12:56am UTC](https://forums.collective2.com/t/sk-small-caps-q-a/16590/19 "2024-08-28T00:56:45Z")
Oh I thought you had used it to test fundamental and technical analysis for you strategy (small caps). I’ve found problems when using it for both fundamental and technical, such as survivorship bias etc. ---
**Author:** ![SeanKelly11](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/seankelly11/32/19323_2.png) [@SeanKelly11](https://forums.collective2.com/u/SeanKelly11)\ **Post date:** [August 28, 2024, 10:31am UTC](https://forums.collective2.com/t/sk-small-caps-q-a/16590/20 "2024-08-28T10:31:22Z")
For SK Small Caps, I do use Research Wizard. I thought you were referencing the article about scoring on my Substack. ---
**Author:** ![InteractiveAssets](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/interactiveassets/32/13320_2.png) [@InteractiveAssets](https://forums.collective2.com/u/InteractiveAssets)\ **Post date:** [August 28, 2024, 11:58am UTC](https://forums.collective2.com/t/sk-small-caps-q-a/16590/21 "2024-08-28T11:58:46Z")
You are correct. I was initially referencing your post not SK SMall Caps. You said that “it’s very similar to the strategy I already trade on C2, which combines price and fundamental analysis.” This made me think that perhaps you had used RW to backtest price and fundamental analysis for SK Small Caps. Did you not do any price/technical analysis using RW for SK Small Caps? [Next page](https://forums.collective2.com/t/sk-small-caps-q-a/16590.md?page=2)