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Strategies & Market Trends : Systems, Strategies and Resources for Trading Futures -- Ignore unavailable to you. Want to Upgrade?

To: ViperChick Secret Agent 006.9 who wrote (11723)	1/4/1999 9:22:00 PM
From: SE	Read Replies (1) \| Respond to of 44573

Wish I had more back history with my indicators....but I don't. Today was interesting. SPX, SP9H, DOW, OEX and HFX all whipped and are now on sell signals after going buy side earlier in the day. The UTIL went buy side while the bonds and the BKX went sell side and stayed that way. The NHB and NYA are still on buys from Dec 16th. coug, maybe I should backtest the NHB against the SPOO signals to see if there is any correlation like you found. Maybe that will help to eliminate the whips. Something out there should be able to minimize it somewhat.

To: ViperChick Secret Agent 006.9 who wrote (11723)	1/5/1999 10:10:00 AM
From: Tom Trader	Read Replies (1) \| Respond to of 44573

Lisa, I remember the period that you are referring to and you are quite right that at least on a couple of instances I was stopped out for money management reasons and then the signal turned out to be correct in the end. In fact, if memory serves me right Suresh made the same point to me at the time. During the back testing that I did when I developed the system, there is no doubt that the results are far better without the use of a money management stop. But that does go against all that I have learned about the importance of money management when trading -- so I have continued to use the stops. May be I should widen it. >>I wonder if the craziness of one stock - an internet stock - could effect your system going forward so that it needs an adjustment or an ancillary indicator to be used just with the S&P 500<< Unlikely that would happen with the SPX since the effect of one stock is tempered to some extent, by the relatively large universe that makes up the index. What I have noticed is that the signals seem to be more accurate when the BKX is confirming the direction of the move.