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Strategies & Market Trends : KEEP IT SIMPLE TRADING -- Ignore unavailable to you. Want to Upgrade?


To: Mathemagician who wrote (112)9/2/2003 1:39:36 AM
From: mistermj  Read Replies (1) | Respond to of 321
 
Mathemagician

>>Wouldn't it be at least as accurate to say that those types of things might have artificially inflated the backtested performance of the system?<<

No,thats not accurate at all.I think you are misunderstanding something.For instance before 9-11 2001 this system would have had you short the last week in May at approx.1265 on the SP500 and it would have stayed short until after 9-11 for approx. 200 SP500 points.The system made most of its money on the move prior to 9-11.The 9-11 downdraft and bounce back was pretty much a wash.

What I'm really getting at here is that there was market weakness before all of these major moves...and this sytem identifies that trend before the big move hit.There is no guarantee it will do it in the future...but I think its reasonable to assume past history often repeats itself.

Even 9-11 had large volume spikes days ahead of the event...someone in the markets apparently knew.Big moves seem to be telegraphed to me.

All I'm saying is this system seems to have a good record of being on the right side of the trade through some of the most trying market events of our lifetime.Why should I ignore that?