Sunday, October 4, 2009

Performance of Chart of Charts Signals

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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