| Original Message |
joeaaron
Posted Jun 3, 2005 3:16 PM
i like mean reversion short-term strategies. once i learned about the VTO report it made sense to me & i find that it works! one thing i like about the VTO system is that it uses QQQQ so you're not taking on single stock risk. what i don't like about it is; very few trades per year.
so i was thinking....
what about a sector/ETF strategy, something like this:
for any given sector ETF - if today's price is above its 50 DMA &
if today's price is at or below its 10, 1.5 bottom bollinger band &
if the 5 day RSI is below 50...
BUY!
how does that sound? it seems to me that the behavior of a group is easier to forecast than the behavior of an individual. trading sectors would minimize the "bad news" effect that can plague a single stock for a long time. it also (theoretically) eliminates the risk of bankruptcy. of course the bounces will be smaller but... you can't have it all.
any tho'ts?
-ja |
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