Tuesday, January 05, 2010

GOOG

Below is an example of my Trend Following Daily Model as applied to GOOG:



GOOG Daily Model

In a big trend, half the trades suck (against the trend) and half the trades are outstanding.  The trading concept at work here is that the wrong trades result in small losses, but that the winning trades result in huge gains.

I'll be including Daily Signals like this in the Trend Following Models service, but only on a "need-to-know" basis, i.e. upon the triggering of a new signal.  


A

4 comments:

dmak said...

Allan,
First,thanks for sharing your system and all your hard work.
I have read about 3X fund decay and wonder if shorting TNA instead of going long TZA would be viable? I have looked at a few limited time periods and it seems to have added advantage. Is there a hole in this reasoning? TZA may not work as well due to low $ value.
Thanks,
dave maki

Allan said...

Re: TNA & TZA

One of my most frequently asked questions (#1 is, "Can you change my email address?") .

TNA can be used as a short-TZA proxy, and vice-versa. Another idea is to use IWM, the unleveraged Russell 2000 index and trade 3X as much, or trade in-the-money options. There is no shortage of ideas on how to trade these models, most of them good.

GOLDEN RULE OF TRADING

FIND SOMETHING THAT WORKS. THEN TRADE IT.


A

Anonymous said...

I have two sources that suggest if you are looking for a short the market entry point tomorrow after the open will be a high into next Monday low (Larson)

1) Helge http://www.cyclelt.com/INT.htm

2) Al Larson's day trading service, weekly chart http://daytradingforecasts.com

curt

Mike said...

GOLDEN RULE OF TRADING

FIND SOMETHING THAT WORKS. THEN TRADE IT.

...when's the book due out?

-Mike