Why does buy and hold have 499 trades? Seems like there should be 1 trade..
Nice work, thanks for sharing.
TM
A new way to look at RSI5
Started by
dcengr
, Jan 07 2007 08:45 PM
15 replies to this topic
#12
dcengr
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Posted 08 January 2007 - 10:05 AM
Why does buy and hold have 499 trades? Seems like there should be 1 trade..
Nice work, thanks for sharing.
TM
It was doing so for all 500 S&P stocks... looks like my list needs to be updated since theres 499 stocks instead of 500.
Qui custodiet ipsos custodes?
#13
vitaminm
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#14
TradeMark
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Posted 08 January 2007 - 12:39 PM
It may be more efficient to make one trade buying SPY and pay only one comission versus $8 x 500 = $4000. That might put buy and hold ahead?
Still, lots of merit considering in such an approach.
TM
#15
dcengr
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Posted 08 January 2007 - 01:40 PM
Well I made the RSI5 > 20 the sell signal.
If that was moved up a bit, then the profits go up, however, you take a bigger draw down during bear markets.
If you compare it to SPY you will see the gains are about the same with 1 trade as you said. But the drawdown is bigger.
This was just an exercise into some thoughts on whether a simple system can beat the S&P500 via basket trading.
Probably can expand on it using other parameters.
Qui custodiet ipsos custodes?
#16
TradeMark
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Posted 08 January 2007 - 02:05 PM
Thanks,
very nice work
TM
