Wednesday, January 13, 2010

Monthly SPX Trading System

Monthly Trades 1990 - Present



Anonymous said...

NNVC is poppin!


Anonymous said...


Call me nutty but this is my favorite ALLAN chart.

Yes some of Allan's other strategies produce better returns. However, I like this because its a low cost alternate to the 'cash grab' oriented mutual fund industry and their relatively useless stockbroker/financial advisors.

I'm sure it would be worthwhile for many hardworking stiffs to use Allan's conservative monthly index approach instead of paying 1/3 in fees over a 20yr period.

Blue collar people all across the land should use Allan's service and ditch


Lucky Luciano

Anonymous said...


Hope this works :-)

Anonymous said...

Am I looking at that vortex oscillator signal correctly ? as the blue line crosses Up and over the red one at the end of december,doesnt that indicate a 'long' signal for the index??

that would rate a 'wow' wouldnt it ??

what a fantastic casino game this stock market is.... the bubble is a flatin agin

Allan said...

Interesting aside, Jim Cramer boasts about how made 20% a year in the 1990's, mostly from bribing Wall Street Investment Bankers for inside information on upgrades and downgrades, along with favored allocations of IPO's. Yet on a level playing field, his so-called "Charitable Trust" scam*, he can't even keep up with the S&P.

Meanwhile, a simple mechanical algorithm like this one garners almost twice his return and does it in a purely legal and ethical way.

*his "Charitable Trust" a/k/a "Action Alerts" service is a scam. He says all profits go to charity. But in truth, only his trading profits (if any) go to charity.

The profits represented by his selling subscriptions to his "Action Alerts" service go right into the coffers of his company, not a dime to charity. Filthy capitalism at its worse.

Anonymous said...

Not to rant but.......

I once belonged to realmoney and constantly watched mechanical strategies outperform some very established traders on that site.

Most of these financial newsletters, mutual funds, broker/financial advisors, mentor/lecturers are more master marketers than master traders.

In addition, when joe six pack trader/investor realizes intellectual gurus like Ken Fisher,T. Boone Pickens, George Soros, etc. can't predict the future this mechanical approach looks all the more viable.

Every once in awhile you read about a guru that sticks with a thesis longer than they should (big ego) and they get crushed.

Discovering site like this blog shows its possible and gives trader/investors the courage to jump in.


David said...

When I see members of my family watching CNBC for market advice I tell them they would be better off using the trade triangles. They'll get better returns than they will watching Cramer & Company.

But it is not easy to get it through to people. They have a hard time getting their heads around the idea that a mechanical trend following system with zero predictive value can consistently outperform most industry experts.

In my own development as a trader I've learned to accept risk and uncertainty. But most regular folks are terrified of it. Admitting that you have no control over the market and are not even going to try and predict its future direction results in total loss of comfort for most. On the other hand there is at least some comfort when they've got a self-professed expert giving them green light, because this is a guy who is supposedly very smart and knows what he is doing. I bet that some Market Club subscribers would have a harder time taking the signals if they knew how they were actually being triggered. From comments I've read on the blog it seems there are a fair number of people who are under the assumption that the triangles have some predictive value.

A simple technical trigger vs an elite education/employment history - you can see why most people choose to side with the latter.

I don't trade the triangles, so not trying to sell them on anyone. Just saying that for most regular folks they'd be a big improvement over what they're currently doing.


in the picture above, Allan use the Faber system, the 10 month monthly moving simple average

just that and works fine
see it at