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Strategies & Market Trends : P&S and STO Death Blow's

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To: Win-Lose-Draw who wrote (23381)1/9/2003 11:45:12 PM
From: augieboo  Read Replies (2) of 30712
 
WLD & Larry: Here are three mechanical buy/sell systems for you guys to look at. All have been back-tested as big long-term winners on the INDU. I'm wondering if they back-test as well for the Naz?

#1. EMA-5

Buy/Cover the index at the close when close goes above PREVIOUS DAY's 5 day EMA

Sell/Short the index at the close when close drops below PREVIOUS DAY's 5 day EMA

2. Advancing Issues

Buy/Cover the index at the close when when today's Advancing Issues moves above PREVIOUS DAY's 3 day SMA of Advancing Issues

Short/Sell the index at the close when when today's Advancing Issues drop below PREVIOUS DAY's 3 day SMA of Advancing Issues

3. Declining Issues

Buy/Cover the index at the close when when today's Declining Issues drops below the PREVIOUS DAY's 2 day SMA of Declining Issues

Sell/Short the index at the close when when today's Declining Issues rise above the PREVIOUS DAY's 2 day SMA of Declining Issues

Note: None of these has a huge percentage of winners, but the aggregate $$$ earned are fairly impressive. Assuming each method were begun with $100 in 1900, all trading was carried out in the DOW 30 Index, all money was reinvested, and no taxes or transaction costs were paid, the methods would have yielded, as of 2001, the following:

1. $16 Billion

2. $315,380,256

3. $140,806,288
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