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Non-Tech : Anyone using Indigo Software

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To: Dr. Stoxx who wrote (25)3/2/1999 5:02:00 AM
From: Jim DiFalco  Read Replies (1) of 42
 
Thomas,

Yes the true power does come from reinvesting the profits from each trade into the next, and you are right it would compound into more than 144% return. I was simply being very conservative in my projection.

I have been moving into my portfolio slowly until I became more comfortable with the program and still have more models to add as I mentioned. Like Caleb I've been working on new portfolio's with stocks that I like to trade and I'm always interested in getting a little more out of the program.

I did work up a relative strength model this weekend that had a lot of promise. 696% average annual return, 69.23% winners, max closed drawdown 26.9%, 25 month return $730,505 on a $10,000 account, a 10 stock rotational internet model. Towards the end some of the trades were 30,000+ shares. Most of the stocks were chosen for liquidity and future potential. This was with 13 trades, 9 winners, 4 losers. I'll start trading this one on the next entry which is liable to take a while. If the model only produces a 1/3 of that return in the next 2 years I would be quite happy.

Again this does not take into consideration the tax consequences.

The program does come with models that produce higher returns than this one. Will they continue in the future?

Some of the models will project out phenomenal returns and you need to be careful as a great looking portfolio could be impossible or difficult to trade because of liquidity problems.

Indigo is expensive

and it's all relative.

I'm curious to see what happens this month.

Jim
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