Dylan
43 posts
msg #122978
- Ignore Dylan
modified |
2/28/2015 1:15:35 AM
A few years ago I joined a website that gave members access to a trend following system. Unfortunately, the service was eventually discontinued. The idea behind the system was simple yet, profitable. Buy 10 stocks during a confirmed market uptrend, and short 10 stocks in a downtrend. The trend confirmation dates were as follow, 8/1/ 06 uptrend, 3/1/07 downtrend, 4/5/07 uptrend, 4/23/07 downtrend, 10/10/07 uptrend, 11/8/07 downtrend, 5/16/2008 uptrend, 6/27/2008 downtrend, 5/5/09 uptrend, 5/21/10 downtrend, 10/4/10 uptrend, 8/4/11 downtrend, 1/19/12 uptrend.
This may not be as simple as it sounds. But, perhaps someone here can crack the code that confirmed the shift in market direction. If so, that would solve the first half of the equation. The system did not employ any stop loss or limit orders. All 10 stocks were sold and bought following the trend confirmation date. From experience, each of these changes in trend produced a profit in the portfolio. Any ideas?
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