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2000
--- In equismetastock@xxxxxxxxxxxxxxx, pumrysh <no_reply@xxxx> wrote:
> 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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