tag:blogger.com,1999:blog-816559531110064247.post7245263667510122910..comments2024-03-08T01:03:44.522-08:00Comments on Humble Student of the Markets: Trend Model FAQCam Hui, CFAhttp://www.blogger.com/profile/09672203690656029787noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-816559531110064247.post-14657407734830035582015-01-22T17:20:53.546-08:002015-01-22T17:20:53.546-08:00I also wonder whether it would help to trade only ...I also wonder whether it would help to trade only the up signals if the SPX price is under the 50-day MA, but not more than 5% under the 200-day MA....And the slope on the 200-day MA is positive. Then, going to cash only when the 14-day RSI on the SPX reaches a value of 80. This would reduce its susceptibility to choppy markets and would prevent you from trading in a year like 2008 or even right before the correction in 2011.Anonymoushttps://www.blogger.com/profile/08641891070454061702noreply@blogger.comtag:blogger.com,1999:blog-816559531110064247.post-71666266340458478652015-01-22T16:48:05.782-08:002015-01-22T16:48:05.782-08:00Hi Cam
Very interesting concept. It doesn't...Hi Cam <br /><br />Very interesting concept. It doesn't seem too risky as long as the market is in an uptrend. Though, It may be true that the short signals (down arrows) should be signals to go to cash and not short<br /><br />Using primarily the long signals could mean that only the years like (2000 to 2003) & 2008 would be most worrisome. I wonder what a 'circuit breaker' constraint would do - such as trading the strategy only while the 14-day slope on the 200-day moving average remains positive. this would keep you away from those poor years. Otherwise, you would benefit from corrections and pullbacks in an otherwise up trending market.Anonymoushttps://www.blogger.com/profile/08641891070454061702noreply@blogger.com