The total return for May using the system's suggested allocations was spx 4.5%....rut -0.6%....and the eem 44.6%. The reason for the range in trading the different indexes is that generally the eem is much more volatile than domestic markets and also that the systems signals have been following the emerging markets recently, as I indicated last week.
The emerging markets do not track domestic markets exactly...on certain days they will be up and we will be down, so the system should do better (as evidenced last week) if trading the index that the system is tracking at the moment. I will add that info daily as well as allocation suggestions to see if either help the returns.
Also monthly and possibly weekly I will track and post the systems accumulated returns as the system switches indexes. Since first posting here 2 mo. ago, the system had returns of 60.2% at allocation and 72.2% at full 2x if one had traded the rut and then the eem (from 5/12 when the system switched).
Trading Blogs
About Me
- Forecaster
- I originally developed this stock market timing system to trade leveraged mutual funds within a retirement account. It appeared that traditional "buy and hold" strategies would not generate the returns I desired in the time frame I needed. I wanted a mechanical trading system that took the emotion out of making decisions about the future moves of the markets. This system gives a "end of day" call for the next days market direction. On some days it requires some input from the trader as the signal may be dependent on the closing price of a particular index. It can be traded using etf's or mutual funds. This blog is for entertainment purposes and to track the development of this system. It is not intended to be used as advice. Use at your own risk!
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