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Strategies & Market Trends : John Pitera's Market Laboratory

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To: ToTradeWell who wrote (2577)8/9/2000 9:10:49 AM
From: John Pitera  Read Replies (3) of 33421
 
You have to remember that this 5 day 21 day Exponential
crossover system will work well in trending markets and
will give you whipsaw in and out moves in trading range
environments.

look here at this chart of the Nasd comp from Oct 1993 to
Jan 1995

geocities.com

the system does not work that bad if you do not have large
transaction costs and don't mind the periods of vacillation
between long and short (or moving to cash) which happen
in clusters.

Now this chart of the next year 1995 shows what a champ
this system is when we get into a trending environment.

geocities.com

It enables one to catch major point moves with a minimum
of consternation, overtrading and second guessing.

John
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