That system is more about bull and bear markets and 401K plans
with the goal of keeping the money in the majority of a bull market
and out during a bear market vs the buy and hold mantra. It's
not really a system that a trader would be interesed in with their
Etrade/Scottrade,IB account, it's a 'paint dry' system like
watching paint dry for managing 401K's with the goal of having
money in a bull market and out during a bear market. It's
more of a system designed for people who don't trade the markets,
but who are fortunate enough to work day jobs (in this awful
economy) and simply want a better way to manage their 401K's vs the
'buy and hold' mantra (never selling and riding bear markets all
the way down) that most of the masses follow and that most brokers
teach.
With most 401K plans at workplaces the options are quite
limited. Most workplaces will NOT let you short, you either
have to be in the market via some select mutual funds (such as
Fidelity) or in bonds or money market cash. For most aveage
Joe's out there, simply being in cash money market with their cash
protected vs riding a bear market down with their co-workers is
fantasitc and far beat's the masses. While it's nice to
profit in the decline via shorting if you can, most people would
have been happy to simply have moved their Job 401K's to money
market in Jan 2008 vs riding it all the way down 30% - 40% like
their co-workers, and then buying back in 2009. For example,
the system would have had you out of the market in late 2000 to
April 2003 (thus being in cash during the tech bubble crash bear
market), then back in the market from April 2003 - Jan 2008 (you
rode the bull market), then out in cash during the last bear
market. Again this is better then riding the market all the
way down with your pears in a bear market, better to be out in cash
that way your capital is preserved.
So again, it's not really a system to trade from, think of it
more as a system that is meant for those who don't trade the
markets or have restricted 401K accounts at their jobs and is
desgined to keep them in the major of a bull market and out for the
majory of a bear market.
It's not really a system for your IB/Scottrade/Etrade trading
accounts.
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recommendation re the signal and trading
Clarification - long term tools section
Posted by rreich on 22nd of Aug 2011 at 06:36 pm
when would you short the market using the system?
please
That system is more about
Posted by matt on 23rd of Aug 2011 at 01:23 am
That system is more about bull and bear markets and 401K plans with the goal of keeping the money in the majority of a bull market and out during a bear market vs the buy and hold mantra. It's not really a system that a trader would be interesed in with their Etrade/Scottrade,IB account, it's a 'paint dry' system like watching paint dry for managing 401K's with the goal of having money in a bull market and out during a bear market. It's more of a system designed for people who don't trade the markets, but who are fortunate enough to work day jobs (in this awful economy) and simply want a better way to manage their 401K's vs the 'buy and hold' mantra (never selling and riding bear markets all the way down) that most of the masses follow and that most brokers teach.
With most 401K plans at workplaces the options are quite limited. Most workplaces will NOT let you short, you either have to be in the market via some select mutual funds (such as Fidelity) or in bonds or money market cash. For most aveage Joe's out there, simply being in cash money market with their cash protected vs riding a bear market down with their co-workers is fantasitc and far beat's the masses. While it's nice to profit in the decline via shorting if you can, most people would have been happy to simply have moved their Job 401K's to money market in Jan 2008 vs riding it all the way down 30% - 40% like their co-workers, and then buying back in 2009. For example, the system would have had you out of the market in late 2000 to April 2003 (thus being in cash during the tech bubble crash bear market), then back in the market from April 2003 - Jan 2008 (you rode the bull market), then out in cash during the last bear market. Again this is better then riding the market all the way down with your pears in a bear market, better to be out in cash that way your capital is preserved.
So again, it's not really a system to trade from, think of it more as a system that is meant for those who don't trade the markets or have restricted 401K accounts at their jobs and is desgined to keep them in the major of a bull market and out for the majory of a bear market.
It's not really a system for your IB/Scottrade/Etrade trading accounts.