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Strategies & Market Trends : CFZ E-Wiggle Workspace

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To: Rarebird who wrote (40472)12/6/2024 1:36:19 PM
From: skinowski  Read Replies (1) of 41461
 
True. Good points.

I can’t help thinking about things, and I act based on what I think - but I’m also aware that what works best for me is trending following. Having back tested rules for entries and exits gives you a chance to have a life - and not work hard on decisions. One never catches a top - or an ultimate low - but, in return, you’re never wrong for long.

Don’t know if you remember AA - Allan’s Alias, here on SI. He used to say that his stops were smarter than he was. I could say the same about backtested rules.

Relative strength is another simple concept that works. If some stock - or sector ETF - is weaker than the index - why would I want to own it? Once I got into the habit of checking this, I was shocked how many stocks and ETF’s underperform their benchmarks. (As an afterthought, I guess, about half of them -g).
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