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.

Related posts:

  1. FXE / EZU Pair Trade
  2. TLT & SHY – ETFR’s View
  3. RSI(2) SAR
  4. SPY & the Lazy Man
  5. The UUP Situation