I'm about ready to throw in the towell on the systems. After 5 years, here's how mine did:<a href="http://www.collective2.com/cgi-perl/systems.mpl?want=p&systemid=25716110"> <img src="http://www.collective2.com/cgi-perl/badge.mpl?systemid=25716110"/> </a> I think I'll just use vector vest now...
very hard to trust any long term trading strategy with the present market volatility. Take advantage of the volatility and learn how to scalp....
The ride the wave model for VectorVest for illustration is up 92% this year with about 16% drawdown. Other years going back to 2005 have not been less than 50%. I think I'm just going to use that.
Generally knowing the math will tell you why the indicator has changed, and this of value to you when you go to create a system.
After witnessing what just took place in the market within the last 3 months, anyone naive to believe that fundamental analysis works at all should be shot. The popular myth propagated by the fundies is that price is always driven by the underlying fundamentals of the company and the technicals are absolute hogwash. This is the most egregious lie that verges on hysteria. If you look at any chart, you would notice that a reversal usually occurs at specific price level. For example, if there was a strong support at $50 in the past, it's highly probable another reversal would occur once price drops down to $50. What's more incredulous is that these reversals usually coincide with important events like quarterly earnings. For example, on the day of the earnings announcement, XYZ would be pushed down to an important price level (eg. $50). When the company announces a better than expected quarterly earnings, the stock jumps from that price level. Hence, it ain't the fundamental analysis but market timing that truly will make you successful in this game. If you would like to learn more about the importance of market timing and other related topics, I encourage you to check out Unholy Grail to Success.