Concluding our forensics on the advantages of XLB versus DBC as a rotational candidate, here’s a pairs study of the two ETFs that may make the whole study moot. Just trade the pair. Displaying stunning linearity and a laser-like equity curve, the 3 day excursion model of the pair is a fast moving study that requires close attention but yields a consistent and reliable revenue stream. Note the model’s equity curve was flat for the first 2 months of the study, which would have kept us in a cash position. However, October saw a distinct change of character for the pair dynamics and it’s been on track ever since based on a 2.5% stop.
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