| Original Message |
joeaaron
Posted Aug 30, 2005 12:50 PM
if you are new to this site & you have no idea what the VTO Report is please go here:
http://www.vtoreport.com/rsi.htm
you'll see what it is and it's explanation. for everyone else, here's an observation:
since the QQQQ vto strategy is a long strategy you might think that it would perform better during bull markets (that's what i tho't). in fact the opposite is true. look at the per year performance (info copied from the site mentioned above).
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______VTO_____$NDX__________ ja comments
1997 21.70%_____20.60%__________bull mkt - VTO underperformed
1998 12.20%_____85.30%__________bull mkt - VTO underperformed
1999 15.10%_____102.00%__________bull mkt - VTO underperformed
2000 63.80%_____-36.80%__________bear mkt - VTO OUTperformed
2001 14.10%_____-32.70%__________bear mkt - VTO OUTperformed
2002 18.80%_____-37.60%__________bear mkt - VTO OUTperformed
2003 21.60%_____49.10%__________UP year - VTO underperformed
2004 3.10%_____10.40%__________flat year - VTO underperformed
2005 2.20%_____-7.10%__________???????? TBD
1997-2005 346.90% 83.40% overall - VTO wins!
as of July 5, 2005
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looks to me like you WANT to be trading this strategy either ALL the time or at LEAST during down markets! if you believe that we are heading into a down/bear market this would be a great way to play it!
just a tho't!
-ja
FYI - the VTO report also says:
"The 5-day RSI strategy has a tendency to underperform the buy-and-hold strategy when the market is strong and outperform when the market is weak, and it's best used as a way to supplement/hedge existing investment income. Commissions and SEC fees were not included in the calculations."
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