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Fidelity Select Funds, Decision Point System


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#1 AChartist

AChartist

    Tim

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  • 5,800 posts

Posted 25 April 2008 - 08:00 PM

I have a new blog entry on analysis and use of the decision point signals. Also applies to their stock signals. First the Conclusion or Trading Rules, then the explainations 1) Dont trade against a long term signal ( will explain frontrunning exceptions later ) 2) Short term buy signals are reliable from 0 to 32 days 3) Short term buy signals within long term sell signals are reasonably reliable 14%, 8 of 57 signals fail for and average 3% loss. 4) Short term buy signals within long term buy signals are powerfully reliable 5) Short term sell signals are reliable from 2 to 20 days. 6) Short term sell signals within long term buy signals are unreliable 7) Short term sell signals with long term sell signals are powerfully reliable 8) Why mess with the rest, only take short term buy within long term buy and short term sell within long term sell signals. New long term buys should be taken immediately with max 1% drawdown likely. 9) But, do not sell a new long term sell immediately, wait up to 14 days for the oversold snapback to retrace up to 5%. Or short sell the sector at about 14 days. 10) Special case of frontrunning. See item 3 above, taking short term buy within long term sell signals. This signal will fail < 8 days or last up to 30 days and switch to long term buy ( where the tech funds are sitting right now on 4/24/8). This is the highest reward trade with average 3% risk. The reliability of this trade is enhanced by chart interpretation

"marxism-lennonism-communism always fails and never worked, because I know

some of them, and they don't work"  M.Jordan