Sunday, March 16, 2008

Gravitas (aka Xyber9)

From the mail bag:

Bruce writes:

I'm curious...So did his buy work out with the corresponding sell day for his last call? If you bought at the end of the day on that Friday and held to the end of the day this past Friday you would be underwater at this point.


The Buy signal occurred on March 6th. The next signal, a Sell Signal, was scheduled to come on March 13-14th. As is often the case with Gravitas (aka Xyber9), the timing of the signal comes in a window that spans across two trading days. This is in fact the source of much criticism of the system.

To which I again ask, was it useful in your trading to know that this methodology was flipping from Long to Short between Thursday and Friday of last week?

Answer: As I type this on Sunday evening, the world markets are sharply lower, with the S&P Futures down over 25 handles.

Whether you can use this information to get on the right side of the market is a question only you can decide. The tool is there, albeit an imperfect tool, but a tool nonetheless.

More on Robert Taylor's work.


A

1 comment:

Anonymous said...

Thank you for the update Allan. I appreciate you taking the time to reply.