Regular readers know that I regard GE as the equivalent of an ETF although it does have a beta of 1.7. Because GE is really a conglomerate of multiple businesses . . financial, technical, manufacturing and service, it responds to a variety of market forces with a greater volatility than the standard DIA, SPY, IWM and Qs indices. Applying the Lazy Man aggregate signal to GE for a 16 month lookback we find trade performance equivalent to the previous IWM and DIA studies but the really attractive feature of trading GE is the relative maximum intraday drawdown. Considering that GE has been priced at a $15 average while DIA has been at an average of $107 over the past 16 months shows that GE is the better risk managed trading vehicle. There is a bias to the Long side for the GE model but the Short side metrics are still very acceptable with the max consecutive losers at 1.
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