Mar

22

I thought this might be of interest. I wrote it after receiving the umpteenth dire warning of things to come in the wake of the housing market situation.

A Mechanical Strategy That Has Produced Consistent Stock Market Profits


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2 Comments so far

  1. gabe ivan on March 22, 2007 1:15 pm

    the exercise is flawed in my opinion.

    1. you need to run an out of sample test to see if it holds, especially for such small numbers (25/82). stat observations don’t care about the bull/bear/sideways markets.
    2. by looking at your graph i see that if you had applied this strategy in the last ~ 100 years (25+81) you had a 40% (almost 1 in 2) chance to yield less than 10% per annum…
    gabe

  2. Enrico Donner on March 22, 2007 10:01 pm

    one of the best trading articles i have ever read.
    enlighting.
    fresh.
    simple.
    deep.
    touchy.
    what a lesson to the traders’ ego!
    bravo brett, bravissimo!
    enrico

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