| Original Message |
Gary
Posted Jun 27, 2005 7:57 PM
Here's an idea to kick around if anyone is interested. I've been trying to come up with a strategy like the B/B strat that has a high degree of sucess but also wins big. My idea is to trade in the direction of the 200 DMA.
Here are the rules:
The 200 dma must be declining (I only took examples that were in obvious decline)
The stock had to of rallied back above the 200 dma.
Short on the first close back below the 200 dma.
Cover on the first close of RSI(10 day) 30 or less
or after 2 months.
I looked at the Nasdaq 100 and S&P for the last 6 months.
I found 39 trades that qualified 37 winners 2 losers 94.8% profitable. Most of the trades were large winners.
The long side doesn't seem to perform quite as good, about 82% although I think anything over 55% should be profitable overall since the winning trades are as large or larger than the losing trades.
Gary |
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