NFV 1083.48. SPX 1072.78. Some convergence, so if you took long ~1066, I recommend going flat here, as the edge is less than 14. Not a home run, but still + ~6 handles. Puts food on the table.
NFV 1076.83. SPX 1076.97. 100% convergence, but look at the somewhat strange way it has done it. NFV is moving down with SPX moving up, into what was a long position. So while we could have gotten more by holding the long into today, it is an anomaly. What we want is NFV to continue in the direction of out position, with SPX catching up in the same direction. Every other way raises the ulcer index.
Someone asked a very interesting question, can I modify "NFV" to work with bonds? I don't know, I have to think about it. One thing that occurred to me immediately is to use the difference between SPX and NFV as a predictor of correlator of bonds to equities, since bonds and equities have a known intermarket causation on each other. But that would not explain, only give statistical correlators which probably not give us edge. If I can make it work on an atomic level the way NFV does for equities, it would be a kind of unification of markets, and as this person pointed out, the liquidity is immense and opportunity would be greater.
"NFV" 1062.79. SPX 1051.27. Getting close to conservative edge, but there is edge for aggressive traders long.
"NFV" 1068.70. SPX 1059.47. Aggressive traders making a killing playing NFV. If you don't have the account size to be aggressive, don't let greed shake your discipline.
NFV 1068.90. SPX 1042.46. So we have >24 and therefore we add a long unit to our position. If we did not exit the initial unit last night in the AHs session, we would now have two long units (aggressive traders could conceivably have three, but they should have taken profits on that one yesterday intraday), with the initial unit under water by about ten handles. 1042 is as safe a point to add/initiate a position all the way to 1010 SPX.
NFV 1070.00. SPX 1047.62. Notice we don't take profits wily nilly - as long as the edge is >14, or > 24, we hold on to those units, regardless of how much we are up. Since NFV continues to go higher, the gap between SPX and NFV is holding more or less steady. Some people choose to take profits on a unit when the gap between NFV and SPX crosses the add point. That is ok and is very safe. I prefer more aggression: Take the profit on a unit when it crosses a certain point, say the previous add point. One is hitting singles, the other allows for home runs. The downside is that your Sortino/Sharp is probably going to be lower on the home runs.