Boy this was painful number crunching.
Performance results of index trading based upon MA crossovers of bullish and bearish charts (Chart of Charts).
Certainly not a get rich quick plan, but beats the hell out of calling tops for months on end. Results are based on single leverage index trades.
Annual Rates of Return.
56% for the 5 day MA, 52% for the 10 day, and 37% for the 20 Day.
Keep in mind, this is for a strange year.
I had hoped to improve the chart of charts with another timeframe heatmap, but just ran out of time today. The heatmaps act a little different....I torture the data to extract the truth, although I will not waterboard the data. They provide a feeling by turning volume of charts into a color pattern using some twisted formulas.
Displayed next to a related scatter chart, and another indicator of potential volatility, this is providing me with a decent interpretation of the market.
I am still working on this, but....best trading theory....scale into a trade on a 5 minute heatmap minor signal, ramp up the trade as signal gets hotter, and at crossover (either 5 or 10 minute, choose your poison) you should be at 100% position, then watch for the reverse...if the heat map turns against your position, start scaling out, and by the next crossover you should have reversed the trade completely.
Only at: Use search box in upper left for Chart of Charts
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Insightful and Useful Comment!