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

this sounds like a trend following cross over system. i'm sure it will work both long & short. you could trade this AND a counter-trend (bollinger band type) system for diversity.

just a tho't.

-ja

Joe,
I'm currently trading the B/B system and Jim's short system. I think I will add both the long and short side of this system to my repetoire. That should diversify me on both the long and short side of each system. I won't be implementing it for a month or so because I'm leaving in a couple of weeks to northern Canada for a, you guessed it, rockclimbing trip.

Gary