It is not a good idea to “bottom pick” by only buying funds that move up from the bottom rungs quickly. The purpose of the model is to direct you into long term trends in the strongest sectors. While a fund that is moving up quickly may be heading into a...
This scenario occurs when a fund with a BUY signal moves down, has a new OUT signal and gets replaced by another fund with a new BUY. The normal procedure would be to shift your money from the first fund that dropped down into the fund that moved up. That’s the...
Yes — After you run the model, the ticker symbols always get reordered from top to bottom by relative strength, with the highest strength at the top and the lowest at the bottom.
It is important to understand that the model will generate false trading signals. No trading model is 100% accurate — in fact 75% accuracy is incredibly good and most outstanding systems with long histories of success have 65% or less accuracy. The key is the...
When you first start out, you should run the model twice before entering any trades. Run it the first week, then run it again the following week to see if you get any new Buy signals. Most of the signals you get the first time you run the model are existing signals....
No — if a Buy turns to blank, this means you should treat it as an Out signal in the sector fund model. This occurs when a fund with a Buy signal drops out of the Top 3. Since the model only allocates capital to the Top 3 funds by relative strength, this means...
