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Strategies & Market Trends : MDA - Market Direction Analysis
SPY 681.43+0.2%4:00 PM EST

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To: ahhaha who wrote (61670)10/31/2000 4:53:04 PM
From: Wayners   of 99985
 
My reward increase with volatility and my risk seems to decrease with predictability. Take MCDT for example. I'm most likely using the wrong street or math terms as I'm totally self taught in this business but at least I've got an civil engineering degree not a math degree.

MCDT moves 9% from low to high on an average day and the 3 day moving average changes direction roughly every 1 out of 5 days. This means that changes in direction of the 3 day moving average have a tendency to carry thru for another several days before a reversal to the other direction. I'd call the 9% a high voltility and the carry through characteristic "predictability" and I can expect a high rate of return by just collecting portions of the those several day momentum moves.
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