Turn, Turn, Turn

By: Joseph Russo | Wed, Jun 3, 2009
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Since making some minor trade filter adjustments to our LEVEL-V trading protocols in early May, we decided to allocate part of our morning tasks to a spate of back testing to see just how this proprietary short-term trading methodology was performing since making the adjustments. To our delight, the results of our findings have been extraordinary.

We have listed the rather impressive trade stats directly on the chart below. Although the system performed well prior, it clearly shows marked performance improvement following our adjustments.

Futures traders faired the best with a $20,090 gross profit per single full size futures contract traded throughout the period. While short-term (NON-LEVERED) ETF traders captured a 27.8% gross profit return from the Dow's close of 7224 on March 15 as the index itself has only advanced 20.8% from this period.

Granted, transaction costs and the like for (NON-LEVERED) ETF's would have likely proved it more prudent just to buy and hold from 7224 however those using LEVERED ETF's came out far ahead of the underlying performance of the index itself.

To everything - Turn, Turn, Turn... There is a reason - Turn, Turn, Turn...
Just as there is a season for everything under the sun, there is also a natural season of cyclicality for various trading strategies. Although medium-term counter-trend strategies are clearly frustrated with performance since the one-way rally commenced from the March low, our short-term counter-trend tactics at LEVEL-V have performed phenomenally well.

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Joseph Russo

Author: Joseph Russo

Joseph Russo
Chief Editor and Technical Analyst
Elliott Wave Technology

Joseph Russo

Since the dot.com bubble, 911, and the 2002 market crash, Elliott Wave Technology's mission remains the delivery of valuable solutions-based services that empower clients to execute successful trading and investment decisions in all market environments.

Joe Russo is an entrepreneurial publisher and market analyst providing digital online media solutions designed to assist traders and investors in prudently and profitably navigating their exposure to the financial markets.

Since the official launch of his Elliott Wave Technology website in 2005, he has established an outstanding record of accomplishment, including but not limited to, ...

  • In 2005, he elicited a major long-term wealth producing nugget of guidance in suggesting strongly that members give serious consideration to apportioning 10%-20% of their net worth toward the physical acquisition of Gold (@ $400.) and Silver (@ $6.00).

  • In 2006, the (MTA) Market Technicians Association featured his article "Scaling Perceptions amid the Global Equity Boom" in their industry newsletter, "Technically Speaking."

  • On May 6 of 2007, five months prior to the market top in 2007, though still bullish at that time, he publicly warned long-term investors not to be fooled again, in "Bullish Like There's No Tomorrow."

  • On March 10 of 2008, with another 48% of downside remaining to the bottom of the great bear market of 2008-2009, in "V-for Vendetta," using the Wilshire 5000 as proxy, he publicly laid out the case for the depth and amplitude of the unfolding bear market, which marked terminal to a rather nice long-run in equity values.

  • Working extensively with EasyLanguage® programmer George Pruitt in 2010 and 2011, the author of "Building Winning Trading Systems with TradeStation," he assisted in the development of several proprietary trading systems.

  • On February 11, 2011, he publicly made available his call for a key bottom in the long bond at 117 '3/32. Within a year and half from his call, the long bond rallied in excess of 30% to new all time highs in July of 2012.

  • For the benefit of members and his general readership, he responded to widespread levels of economic and financial uncertainty in the development of Prudent Measures in 2012.

  • He publicly warned of a major top in Apple on October 26, 2012 in the very early stages of a 40% decline from its all time high.

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