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

To: wilywilly who wrote (38029)	10/6/2005 8:34:58 AM
From: Dr. Stoxx	Read Replies (1) \| Respond to of 39683

Good questions, ww. I have to say that we launched the BTT Fund into the worst market conditions I've seen since the 2000 top (though those were heady days for BTTT-MAX!). It has been extremely frustrating to position and swing trade in all this chop chop and sharp reversals. The S&P tried 3 times in the last 4 months to put on a bullish breakout, and all 3 times it has failed (this last time miserably). The real frustration is that while there were certain signs of failure in the last two attempts prior to the selloff, volume analysis was so totally bullish that we were constrained to load up in anticipation of the breakout. All 3 times we got burned with a load of longs that hit their stops (sometimes for small profits, more often for larger losses). The Fund has been mostly treading water through it all. Last week the BTTT Swing Trade letter hit new alltime highs...but this week we've seen about 2 months of gains completely wiped out (in 2 days!). 2 weeks ago the MTT letter hit new alltime highs, but 3 losses in a row have put a large dent in that! The Index letter got off to a great start, but since mid-August has had a string of profit-cutting losses. What has worked? I'm hesitant to say since what seems to work one week fails to work the next under these conditions (can you hear the frustration in my typing???)! Yes, I am trading BTT-MAX in the Fund and am very hopeful with our little experiment working well (so far) that this may be a HUGE profit maker for us. Right now I am going very light with this, but if after another month or so we are able to beat buy-and-hold handily, I'll put up to 20% of the Fund into 3 or 4 MAX portfolios...and use a conservative compounding strategy to let these positions grow over time. Our long-term ACG position has worked well for us. I have a core there, and trade in and out on technicals. It's been averaging about +1% per month with dividends. As a defensive posture, I've decided to do more daytrading and go very light into the close. Our daily daytrades listed in the BTTT Newsletter have been nice winners lately. So far this has worked well to ease our losses. Hope that answers your questions, TC