Can You Guess What this Unconventional Strategy is Saying Now?
Corona Del Mar, CA
Howdy Friend,
I had a good chuckle today...someone was mad that my book, Outfoxing Wall Street, wasn't longer. It's a simple strategy consisting of seven lines of code -- it says so on the cover. Seems silly to write a 200-page novel. Should information be valued by the pound, or profound?
I wish someone had shown me those seven lines of code 26 years ago. It would have prevented a lot of blown up accounts, wasted time, and undue stress. Anyhoo...it's up 12.1% for the year...beating the S&P 500.
That's more than I can say for a lot of traders who just can't seem to shake their bearish shackles off despite the evidence. Let's take a look at what the strategy is saying now... |
The 7 lines of code strategy is pretty simple.
It can be in two phases: 1) Trend mode, and 2) mean reversion mode. In trend mode, it just lets the S&P 500 climb higher giving it a wide berth. If stocks are falling, the strategy switches rapidly between stocks and bonds (swing trading SPY/TLT). |
It's currently on a "buy" signal, matching the Smart Money.
This is a good beginner strategy because it...
I mean, if this sucker beats a trader who is spending hours drawing silly trend lines and scribbling Elliot Wave counts all over his computer screen, then maybe he'll kick off the hay and get a whiff of that hot pot of mud.
With a bit of elbow grease, the strategy can also be programmed into most back testing software.
When I was a kid, I used to appreciate when I'd score a book or magazine and the computer code would be in there to manually type into a TRS-80 (we called 'em Trash 80's). As for the advanced techniques, well, my company has taken an entirely new route after six years of non-stop R&D on the latest in machine learning and cloud computing.
You can learn more about those advanced techniques on our newly re-designed homepage.
Have a look:
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Disclaimer: The results listed herein are based on hypothetical trades. Plainly speaking, these trades were not actually executed. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under (or over) compensated for the impact, if any, of certain market factors such as lack of liquidity. You may have done better or worse than the results portrayed.
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