Market Timing with the 50 day moving average may work well with some indexes, stocks and ETF’s but not the DOW or DIA. Below are two Systematic Trading Plans. The first Trading Plan is for the Simple 50 day moving average, the second is for a better combination of rules for the Dow or DIA. Both beat “Buy and Hold”
Summary Tests are run with a $100K Equity and $50K invested per trade. See position report for more details. Performance and annualized performance should be doubled to determine a more accurate return. Also see Point tests for additional comparison.
Here is one of our Proprietary Trading Systems –
The performance of the proper Trend Following Trading Plan can significantly increase performance.
I believe that there are many excellent trading systems. The DIA does not trade like FXI, OIL, or bonds. A Systematic Trader needs to use the right trading system for the right asset.
There is “No Holy Grail” in trading systems. The best a trader or portfolio manager using a systematic approach to trading can do is to find a method that has produced good back tested results and anticipate that the characteristics of the asset will allow future performance. Past performance is no guarantee of future results, but I would like to know that the methodology I am using has produced favorable back-tested outcomes.
For more information of a Systematic Trading Plan for an Index or ETF, contact mark@seleznovcapitaladvisors.com
www.seleznovcapitaladvisors.com
