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Strategies & Market Trends : Befriend the Trend Trading -- Ignore unavailable to you. Want to Upgrade?


To: Dr. Stoxx who wrote (7715)5/27/2000 8:42:00 AM
From: KipferlMeister  Read Replies (1) | Respond to of 39683
 
Thomas,

I agree that PLCM looks like a great trading candidate. The chart also illustrates something interesting, namely that if a stock is given to broad, sustained moves, it's much more profitable to forget about cross overs and trade simple 5pma directional changes. This is what you seem to be approaching when anticipating cross overs in your recent trades. Buy when the 5pma heads up, sell when the 5pma turns down. Granted, this system creates more whip-saws, but it cuts both ways as the chart of PLCM demonstrates: trading the last cross over would have lost money while the 5pma signaled a profitable trade. Also, the additional profit from getting into winning trades early could well make up for the loses from the occasional whip-saw ...I haven't back tested to see if this is true, though. Any thoughts?

-Michael



To: Dr. Stoxx who wrote (7715)5/27/2000 5:43:00 PM
From: jesso  Read Replies (1) | Respond to of 39683
 
For what it's worth, PLCM backtested horribly compared to BVSN, DIGL, SNDK, etc. While the current favorites generated returns in the 100s of percent range between the beginning of the year and now, PLCM generated a measly 10% return or thereabouts. This is if you strictly buy and sell at the close of the crossover bars.