Ron,
I started testing the system in November, but I could never really make it profitable. I tested it with Supercharts 4.0 and the Dial Data 25 year historical data CD.
I programmed Jeff's "system" to buy on his signal, then sell in five days. Unfortunately, testing back 25 years on ALL stocks in the market with no stops, I came out losing $200 per trade (1000 shares, 1/8 slip, $20 per trade).
From there I just started tweaking the system by adding stops and other criterion. The best I came up with gained about $300 per share. But this one hardly ever traded and I feel it's too optimized.
So instead of doing all stocks in the market, I did only the Russell 1000, (Thinking larger, more popular stocks would fare better) but I got similar results.
In Jeff's book, He claims the method makes an average of 1 5/8 per trade (I think). I'm obviously not doing something he does, or I'm messing up my stops or something. I did get some good ideas from it, though!
Has anyone out there had any luck trading the 5 day momentum? (Or paper trading?)
Thanks,
Jim |
