Trading/Investing based off correlation history

Discussion in 'Strategy Development' started by drukes1234, Apr 29, 2006.

  1. Does anyone here invest off correlation history? I'm not talking price action -- I'm talking about a strategy where let's say 80% of the time 'X' has happened 'Y' has occured, therefore giving you the opportunity to profit off of 'Y' -- one example would be, 80% of the time the yield curve has inverted for a certain amount of time, the economy has gone into recession. If anyone does invest/trade this way, can you point out somewhere we can go and look at guidelines for possible future correlations?

  2. run along the time line with two different mirrors. Use one mirror to reflect symmetry about the present and another to reflect inverted symmetry.

    Note when the light bulb goes on.

    The first mirror handles what is called end effects.

    The second mirror is what is called continuation.

    The 80% is much to low for when the light bulb is going on.

    One bulb or another is on all of the time.

    If you have graphs stacked up for each of the market variables, you get the relationships of the market variables handed to you as a consequence of all formations of the market.

    Conversely, you get to know why all formations work based upon this across the board proof.

    You may conclude from all of this possible correlation work that you ask about, that the prior works of other to get principles, etc., is a matter of examining corrolations to come up with the well seasoned principles that they have discovered.

    Scoring comes from adding, as a lesser variable A/D, to the P and V principle variables.

    The periodicity realtaionship of these three variable come from determining corrolations using frequency of occurance.

    The total learning curve is about 4 months. Elsewhere someone is opining about 10 years to get to greatness.
  3. ==========
    No because even the purest/most accurate correlation history ;
    personally would want price confirmation.

    Some mutual funds paid on gross, NOT NET income ,do things like that in answer to question;
    however found some thing that worked on GE over 88% of time but still wrong 8 months in a row over a lifetime.:cool: