yeah it depends - the systems are sort of like a relay race
runners where one runner hands off the baton to the next.
The systems first only look for a simple reversion to mean move
and in most instances will exit after such a move. However, upon
completion of that reversion to mean move the systems make s
decision whether to exit or hold. Most of the time they exit,
however sometimes they will hold if a momentum indicator has
flipped and says there's potential for a bigger move. In order for
these systems to hold longer - that momentum condition would have
to trigger - doesn't look like it will trigger for the QE 3 for
SPY
regarding the analogy - if conditions are met for the system to
hold the trade longer than a simple reversion to mean move - the
baton is passed on to the next runner
thanks matt, that's a helpful explanation... i ended up selling
off both QE3 and Strap systems at the bottom of the channel and
will consider re-entering the strap trade if the S&P moves back
up the channel and it doesn't look to exit today as well.. don't
mind double dipping if there's a reasonable opportunity
;)
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yeah it depends - the
SPY system feeling like a home run.. especially with the ...
Posted by matt on 1st of Jun 2022 at 11:54 am
yeah it depends - the systems are sort of like a relay race runners where one runner hands off the baton to the next.
The systems first only look for a simple reversion to mean move and in most instances will exit after such a move. However, upon completion of that reversion to mean move the systems make s decision whether to exit or hold. Most of the time they exit, however sometimes they will hold if a momentum indicator has flipped and says there's potential for a bigger move. In order for these systems to hold longer - that momentum condition would have to trigger - doesn't look like it will trigger for the QE 3 for SPY
regarding the analogy - if conditions are met for the system to hold the trade longer than a simple reversion to mean move - the baton is passed on to the next runner
thanks matt, that's a helpful
Posted by greggone on 1st of Jun 2022 at 01:11 pm
thanks matt, that's a helpful explanation... i ended up selling off both QE3 and Strap systems at the bottom of the channel and will consider re-entering the strap trade if the S&P moves back up the channel and it doesn't look to exit today as well.. don't mind double dipping if there's a reasonable opportunity ;)