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Strategies & Market Trends : Systems, Strategies and Resources for Trading Futures

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To: Tom Trader who wrote (11707)1/4/1999 9:00:00 PM
From: ViperChick Secret Agent 006.9  Read Replies (2) of 44573
 
Tom

There was a time in the latter 1/2 of 98 that your system caused a number of whipsaw signals. This is not specific to the S&P - for instance one time I remember it happening to the BKX in this same time frame. However, I know you concentrate here on the S&P.

At least one time you were whipsawed due to money management but the trade would have worked out.

During this time a number of people all over SI were whipsawed with their systems. I can't remember the time specifically, but I am sure you don't forget that one due to money management. Anyway, have you tried to isolate what the common denominator might be between now and then?

Obviously, one difference is the addition of AOL (not sure of the effective date or the weight). An argument could be made that this stock would become more stable since it is added to the S&P. I argue that it will cause the index to become even more volatile and subject to an even greater whipsaw action.

I wonder if the craziness of one stock - an internet stock - could effect your system going forward so that it needs an adjustment or an ancillary indicator to be used just with the S&P 500.
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