Regime switching models

Discussion in 'Strategy Development' started by 99atlantic, May 17, 2006.

  1. Has anybody had much success trying to trade regime-switching technical analysis models? I.e., it actively tries to determine whether to buy/sell (so you're just reversing your position) or if it should buy/exit short/exit (so it exists and doesn't reverse)

    I've been playing around w/ it, but usually the results are mediocore at best - sometimes slightly better than just long only or short only, sometimes worst than just long only or short only, but never better than long/short together. ........ my hypothesis was that it could try to whether the choppy periods to reduce drawdown, but, meh, it really isn't panning out that hot because of the other areas it looses in

    I dunno, maybe i'm just rambling because I'm tired right now ^_^
     
  2. Very simple. Read up on trend.
    If the trend is up: buy;
    If the trend is down: sell.
     
  3. Hehe, if only it were that simply ^_^