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Greetings all,
This post will try to address specfic questions I have received. Later
posts will talk about the systems themselves.
There have been numerous questions regarding my system. I will try to
answer all of them. First of all, my job is to create and trade trading
systems. I work for a high net worth individual. Together we put
together this proprietary system. I use data from Reuters and
Barron's. The only software I use for this system is Excel (BIG
FILES!). I use Metastock for my charting, but not for this system. I
trade this system in accounts at Fidelity and Jack White. The system
only trades mutual funds right now. The trading costs are minimal. The
Fidelity Select funds charge a one-time 3% load on new money (and if you
move your money out of the Fidelity family of funds and try to
re-enter). If you hold a Select fund for less than 30 days, you will be
charged 0.75%, otherwise it is $7.50. Other than that Fidelity does not
charge commissions if you use TouchTone Express, but Fidelity will not
allow you to use margin. Jack White charges $27.00 per trade (in
addition to Fidelity's fees), but will let you use margin. This system
is suited for retirement accounts due to the turnover.
We use a long-term stock market model with a intermediate term bond
market model to define "zones". We define our "zones" as follows: For
example, if both models are positive, we call that zone 1.
STOCKS BONDS ZONE
+
+ 1
-
+ 2
+
- 3
-
- 4
Currently, we are in zone 1. Somebody asked if we get whipsaws--of
course. Our bond market model turned bearish two Fridays ago only to
turn bullish again this Friday. My next post will talk about the stock
market model.
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