Question

    Posted by jdaswani on 2nd of Jan 2015 at 11:26 am

    Maybe im only one here today..

    Any observations..When the SPY systems go long, do the other idices follow? QQQ, IWM can I use SPY system as proxy to take on more beta?

    or do u have a QQQ/IWM system u can share?

    I don't have an official

    Posted by matt on 2nd of Jan 2015 at 11:50 am

    I don't have an official QQQ system based on the rules of the SPY systems, though as sbwoman said you could make one. Also remember the stops are not the same on all the SPY systems, it's tighter for the SPY RSI 2 system and only 4% for DVY system

    I agree that it would be nice to have one, honestly my approach in a perfect would would be to have systems for SPY, QQQ, IWM, i.e. large cap, techs, and small caps for diversification.  

    Yes I have other systems, I have a NQ nasdaq futures systems, but that's futures, so stops would not work the same for QQQ.  I have a weekly QQQ ETF system and other ETF systems but I have not shared those yet, I've discussed those in the newsletters as ones that I'm following for a while before I release them, I want to see them trade a bit.

    remember the SPY Pro, RSI 2, Ver 2, and DVY systems are reversion to mean systems, they are not trend following systems, they are similar to a Larry Connors methodology. They are in cash more than they are in the market, they look to buy pullbacks when price is above long term MA's.  Reversion to mean systems have benefits of only being in the market 20 - 40% of the time, and generally have very high winning percentages, the drawbacks however are that they can sometimes buy a pullback too early that turns into a very deep pullback, and another one is that they can sometimes miss strong rallies if a deep enough pullback doesn't occur to allow them to get in.  

    I am working on some breakout or trend following systems that in my opinion may be good to run along side the reversion to mean systems.  Trend following systems have benefits of following the trend and catching breakouts and breakdowns, their draw backs are that they don't do as well in choppy markets and have lower winning percentages of 60 - 70%.  

    Each type of system has it's benefits and draw backs, so my thinking going forward is that it may make a lot of sense to run breakout systems and reversion to mean systems at the same time on the same instruments as their styles of trading may synergistically work together.  Trades would also counteract each other at times because one system may be long while the other is short at the same time, thus at times while both systems have a trade you may have a net zero position.

    anyway I got a little too long winded, this is a discussion for another time 

    thanks.  I got a little

    Posted by jdaswani on 2nd of Jan 2015 at 11:56 am

    thanks.  I got a little aggressive today...I bot SPY, IWM & QQQ all up on the day.. oops. Well im still in on long side, haven't been shaken out but am feeling foolish at the moment. 

    SPX

    Posted by roger on 2nd of Jan 2015 at 11:42 am

    until the 30 min macd turns up at a minimum, she a going down, imho

    If you look at the

    Posted by sbwoman on 2nd of Jan 2015 at 11:37 am

    If you look at the mechanical systems section it gives you the rules for each system. There is not one for the QQQ or IWO, but you can make up your own if you want. The SPY Pro suggests putting in a 10.5% stop loss. I suggest patience. 

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