This thread will measure my equity curve for your enjoyment, and show a trend following strategy that has proven itself to me after testing everything else my heart desired.
The objective: Catch the "tails" of stock trends using classic trend following tactics, technical analysis, and the occasional automated strategy when a third wave is anticipated
via Elliot Wave analysis.
A Reg T cash account will be used using hourly bar charts on various stocks that show the required setup:
1. Countable Elliot Wave situation leading to an anticipated third wave.
2. Momentum divergence using MACD, Slow Stochastics, and any other momentum indicator such as RSI, money flow, etc.
3. Buy trigger on automated signal or trendline breakout.
The setup illustrated:
Images copyright Elliot Wave International, taken from Jeffrey Kennedy's Commodity Trader's Classroom ebook