Tuesday, January 5, 2010

Wednesday's Call

The call is to switch long.

I will trade spx at 1.75x.

2 comments:

  1. I was wondering if you had some time to discuss your system in more detail? I was looking to develop my own market timing system and would really appreciate it if i could pick your brain. I am not asking for your secret formula or system details but just an overview of how you started your research and what you base your final decisions on.

    Thanks Brandon

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  2. Hi Brandon, Generally timing systems try to predict market movements, up or down. Some are longer term, others short term. Mine is basically day to day...but can stay on one side for a number of consecutive days. Some systems are trend following, some are contrarian in nature...it depends on your trading style or timing premise.

    I had been looking at timing systems and subscribing to some for a few years. I had an idea that I thought was fairly original, and am developing a system from it...This blog is a form of documentation for me. I would suggest that you diversify and follow a few systems,whether they are your own or someone else's, as this will even your returns.

    Back testing is important but tricky as it is relatively easy to fit your system to historic data and then not perform well in real time. My advce is to study the market movements and existing market technical indicators....then derive an idea that is logical in predicting market movements and create rules to define the entry and exits.

    http://www.investopedia.com/university/tradingsystems/default.asp

    You might find this link useful depending on your current level of expertise.

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