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Strategies & Market Trends : KEEP IT SIMPLE TRADING

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To: Michael Watkins who wrote (34)7/23/2003 6:35:43 PM
From: mistermj  Read Replies (2) of 321
 
Hi Michael.The system as it is designed right now is always in the market.A buy signal runs until it gives a sell signal...that sell signal is not a signal to get out of the market,it is a signal to play it the other way...and on it goes...long,short,long ect.

It will not stay in bad trades very long(relative to the system).Whipsaws will happen,but it will ride all trends for all they have to give.A very choppy market...on a weekly basis,would be very bad for this system.Choppy whipsaws often predict big moves ahead so you have to play all the signals and make out big when they happen.

Think of always having your money at work long term, capturing trends long or short...thats the goal here.Think weekly...longer term is the key.

I should also note it will be very interesting to watch how the regular SP500 fund in the basic system performs compared to the leveraged funds in the high risk system.
The high risk system produces incredible gains during long extended moves but daily chop eats them up.

Its all an experiment...I expect the basic system to kick out nice gains year after year...the other systems might blow up.It should be fun and it will illustrate how hard it is to tame those leveraged funds for long term trades.

I will post some back test numbers when I get the time with trade dates...that should help to visualize the system better.Hope this answers your questions.
MJ
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