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At 11:17 AM 10/28/97 +0900, Rick Mortellra wrote:
>Hi Frank,
>
>I think you miss the point. It's not the trading system I follow blindly but
>my money management system. BUT, the success of the money management system
>can only work with a truly mechanical system trading system. Everyone has a
>trading system to sell but no one sells a money management system because
>that's how the real money is made and kept. Do not make the mistake of
>thinking of them as one combined system. They are 2 distinct entities with
>money management being the dog and and a trading system the tail.
>
>And, unlike many others I do think there are alot of good trading systems
>being sold in the public area. MIRAT may be one of them but I've never heard
>of it until now. Howard Bandy said it is a true mechanical system so it just
>may be worth a look. You've followed it so please give me hint as to how it
>works.
>
snip, snip, snip . . .
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Rick -
Yes, I agree that Money Management is indispensable to the successful
investor/trader.
MIRAT is an Mechanical Intermediate RAnge Timing program. It generates
Buys and Sells for any of the DJIA, DJU, NASDAQ, NYSE, S&P 500 or ASE
Indices. The theory is that if an Index, especially the DJIA, is heading
up or down, that most equities and mutual funds will go the same way
because of the great influence that many feel that the Market in general
has on those investment instruments.
Users input NYSE, NASDAQ and ASE Advances/Declines, New Highs/New Lows and
Advancing/Declining and Total Volume either manually or through a fee-based
BBS offered by Tools for Timing, MIRAT's parent company. If one subscribes
to the data service, they also receive Mike Burk's (MIRAT's author) daily
Market Commentary and other valuable information.
Parameters within the algorithms are changeable for those who want to
experiment. Over the years there have been interesting combinations, but
the original values have not changed very much.
MIRAT'S Annual Compound Rate of Return between March 22, 1978 and today,
Monday, October 27 is 20.63%. Buy and Hold of the DJIA yielded a Total
Return of 845.30%, while following MIRAT's yielded 3,847.45%, 355.15%
better. There have been only 47 Round Trips, averaging about 2.5 per year,
so this is not a very active trading program.
The figures I have given are for the original MIRAT, now known as Classic
MIRAT. During the last couple of years there have been refinements that
show greater Compound Rates of Return with more or fewer trades for the
time period in the above paragraph.
Not surprisingly, MIRAT is still long even after Monday's trading. It
does not react very quickly to moves as like what happened today. It more
works with data that reveals more gradual building of foundations of Market
Tops, especially with (algorithms massaging) New Lows and
Advances/Declines. Recently MIRAT's output has indicated that we are not
at a Market Top. Be that as it may, there can be other reasons that send
Markets tumbling! :-)
-- Frank :-)
High Return on Investment using Technical Analysis
http://www.usinternet.com/users/fbg/
Minnesota Long Distance Canoe Racing
http://www.usinternet.com/users/fbg/mnlong/
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