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JO,
Thanks!!
You mentioned a single small losing year, which year was it?
Thanks again,
Preston
--- In equismetastock@xxxxxxxxxxxxxxx, manohohman <no_reply@xxxx>
wrote:
> Roy (code refinement) and I (theory and application) took Zweig's
old
> 4% indicator based on the Valueline Geometric Index, updated it,
> added a twist to it and refined it for trading the SPY Daily.
>
> Here's how it works.
>
> 1. Instead of the Valueline Geometric Index, this system uses the
> Valueline Arithmetic Index. (This is an important difference!) This
> index is $VLE on Esignal. (I don't know what it is on whatever free
> service you've found so don't ask me.)
>
> 2. Once you've opened that Index on a daily chart, color the price
> line (not bars) red, create the following expert, and apply it.
>
> Highlight Code Green
>
> X:=If(Cum(Ref(C>Lowest(C)*1.04 OR C<Highest(C)*.96,-1))=0,
> If(C>Lowest(C)*1.04,1,
> If(C<Highest(C)*.96,-1,0)),
> If(PREV=1,
> If(C<HighestSince(1,PREV<1,C)*.96,-1,PREV),
> If(C>LowestSince(1,PREV>-1,C)*1.04,1,PREV)));
> I:=Cum(1)<=2;
> State:=BarsSince(X=1 OR I)<BarsSince(X=-1 OR I)+(Cum(X=1)=1);
> State;
>
> 3. Since March your price line should be green, except for two red
> down turns.
>
> 4. To this chart apply a simple 20 ma.
>
> 5. Open another chart of the SPY daily. Create a new window on the
> Valueline chart, copy the SPY daily and paste it into the new
window
> on the Valueline Chart. Close the SPY chart.
>
> 6. Here are the trading rules. You must follow them exactly. A buy
> signal is created when either the price line turns green or crosses
> the 20 dma. You take which ever signal comes first. It doesn't
matter.
>
> A sell signal comes when the price line turns red or crosses below
> the 20 dma. It doesn't matter which comes first. You take the first
> signal from either indicator. You sell the long and take the short.
> If you're trading in a retirement account, you can't short but you
> can buy Rydex, Profunds or Potomac on the short side.
>
> 7. To avoid whipsaws, you can use a pyramiding technique of buying
> one third of your buyin at a time. It will limit losses on the
> whipsaws but reduces your overall return somewhat. It's all in your
> risk profile. You decide.
>
> 7. Since you can't buy the Valueline Arithmetic Index you buy the
SPY
> on the Valueline entry and exit signals.
>
> 8. Don't apply this to any other security except the SPY.
>
> 9. How good does it work?
>
> Over the last 10 years, it's averaged 22% a year, with one small
> losing year and 40% plus gains the last 3 years. Just take
whichever
> signal occurs first, either the green indicator signal or the 20
dma
> crossover.
>
> This is as simple as TA gets. Use it to your advantage. I got this
by
> paying attention to some of my systems development books. It's
about
> twice as profitable as Zweig's original method, and is about 3
times
> more profitable than buy and hold.
>
> Now isn't this why you bought MS in the first place. I know, don't
> tell me, all of you arrogant wizard traders won't waste your time
on
> a measely 22% a year unless I can hang a 1 in front of the 22. No,
> you killer TA masters are going to make buckets of money! Really,
> well here's an article to put that theory to rest.
>
> www.investorhome.com/psych.htm
>
> Read this article on behavioral finance and see what arrogance gets
> you......
>
> This system is free, my momma could make money with it, and now you
> don't have any excuses for losing dough.
>
> JO
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