I don't expect anyone to follow a system blindly, let alone trade it. So, I want to give out as much info as possible without disclosing sensitive info about it. When I started out on this project, I wanted to minimize researching individual stocks or mutual funds because I just didn't have the time for it. I started brainstorming one day about a mechanical system I could trade, one that would beat the market while at the same time minimize risk. I researched a number of variables, MACD Histogram, Stochastic, moving averages etc...
None of them showed signs of consistent returns. I began my research all over again this time focusing on what sectors of the market are in favor right now. Although this system is not a short term trading system, I found that by knowing what sector is leading over an intermediate time period led to predictable returns for the market in the next 4-6 months. This is the stepping stone of the system.
I tested past performance, and was very excited when I saw the results. Now I'm well aware of the saying 'Past performance is not an indication of future results, however the time period I tested this on experienced so many extremes (1994-2006) a raging bull market, a devastating bear market, and a period of stagnation. I'm currently in the middle of testing the system back to 1990 and I will let you know results here once I'm done.
That's all for now, I should have more to say later tonight or tomorrow morning. Thanks for listening.
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1 comment:
How is your system's performance compared to the dog of the dow or the foolish four systems?
-pete
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