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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?


To: Lachesis Atropos who wrote (16375)6/6/1998 3:40:00 AM
From: Johnny Canuck  Read Replies (7) | Respond to of 68426
 
Hi Lachesis,

It looks like you are making good progress on your trading system.

I have one question and one suggestion.

Tom Trader on the Tech Option Thread has stated many times
that he has found that system trading works better on the indices
as opposed to individual stocks. By better he is referring to
the total amount of profit over the period of time of the study.
Have you done a study on this aspect and if so what are your results?

I also recently ran across an indicator used by the Worden Bros.
to measure the health of the market. They are using the number
of stocks two standard deviations above their 200 day moving
average as the measure. If the number is extremely high it indicates
the market has run up too fast and statistically it will correct.
If the number is extremely low then it indicates the overall market
is oversold. I know you have looked at sector rotation, this
indicator may work for giving you a measure on the health
of the overall market.

Harry