What does the strategy do?
There are both Long and Short Versions of MAPS. The MAPS technique requires specific setup conditions to be met on the first day and specific trigger conditions the following day. Running the EDS scan in the evening finds stocks meeting the setup conditions. During the next trading session the trader can watch for the price and volume conditions of the trigger to be met. This is usually done by setting price triggers in AIQ or myTrack software.
MAPS Setup Conditions: The stock must be in an uptrend. The stock must not have fallen below the 30 day simple moving average in any of the past 30 trading sessions. The stock has pulled back to within 1.5% of the 30 day simple moving average. The average daily volume of the stock must be at least 300,000 shares.
MAPS Trigger Conditions: If the setup conditions were met after the close today, then look for the trigger conditions tomorrow. The high on the day after the setup conditions are met must be above the previous day’s high. The volume on the trigger day must be above the average volume. When a valid MAPS setup occurred yesterday, and a valid trigger occurs today, then the MAPS system buys at the opening tomorrow and holds for three days then closes the position. Traders should always use a protective stop to protect from large losses.