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I thought that I offer a primer on FT then get to some specific
trading questions. First, let's separate the FastTrack world into
four topics -
1. Mutual fund trading
2. FT as a tool
3. Trade
4. Community
Mutual fund trading may seem conservative to some, but it is just
another class of issues that range from conservative to aggressive.
Much of FT evolved out of agressively trading Fidelity Selects. To
that end, the FT program has alway concentrated on pair switching -
trading from one fund to another based on a buy/sell signal. Long to
MM is just a special case.
FT for Windows is the current incarnation of the tool that is bundled
with the mutual fund data. FT provides "clean" data on funds (which
is no small feat) that is back adjusted for distrbutions in a timely
manner. The tool is a Windows program in architecture, but not in
look and feel. Be that as it may, the tool offers some very unique
capabilities for ranking, manipulation of user defined families,
switching, etc.
Trade is a language developed Ed Gilbert that is an impressive piece
of work that is free. It is vector programming language (like AB),
but with calculations extended to families of funds/stocks, is better
described as a matrix processor. It is very fast, and allows
indicators, timing signals, and trading models to be developed very
quickly. Frankly, until AB, I hadn't found anything close, and like
Fred, I've used many of them.
All of this came together into a community of people from varied
backgrounds. They concentrated on market timing and fund selection
and developed techniques that may have lacked the rigor of academia,
but JUST WORKED ! In 1997, Don Beasley catalyzed this group by
developing a "Dominant Market Theory" that focused on the Russell
2000. This turns out to be a very useful tool for timing. Others
expanded on this idea. Don Bell, who is very prolific, has developed
a myriad of timing signals for small-cap funds, junk bonds, tech's,
etc. Werner Gansz developed the basic Russell signals and also a
program called NCALPHA that is the tool of choice for ranking funds
relative to an index based on non-correlated Alpha (which can be
thought of as the stock picking skills of the fund manager).
Next - how is it used, what are the results?
--- In amibroker@xxxxxxxxxxxxxxx, "bruce1r" <brucer@xxxx> wrote:
> Chuck - I think that I might be one of the people that Fred was
> referring to in an earlier post who comes from this FT/Trade world
> and also has some experience with Amibroker. I am "stuck"
somewhere
> for the next day and will have some time to post an overview and
> hopefully answer a couple of your questions. If you bear with me,
> I'll go until the board tells me to stop. Here are the bullets -
>
> 1. The FastTrack community drew a group of people together over
many
> years who have done a body of very impressive work on selection and
> intermediate term timing. I've become familiar with the depth and
> excellent quality of your work, and think that you would find it at
> least interesting.
> 2. The work was focused on funds, particularly small cap's because
of
> their trend persistence, Alpha, and lower volatility.
> 3. Much of the work is transferrable to stocks as Gary S. has found.
> 4. There are approaches to working around the fund trading issues
as
> Fred has mentioned.
> 5. For whatever its worth, I've imported/ported much of the work to
> Amibroker.
>
> I'm off to dinner. More later.
>
> Bruce R.
>
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