Monday, October 8, 2012

Another TLT System...10.8.12

This is a continuation of our study of non-correlated technical studies that can be used to forecast momentum in TLT.  This is the Lazy Man TradeStation system for TLT.  Its a spin off of the 3 Finger Lead system that I have posted on extensively.

A simple trend follower, the Lazy Man looks at the momentum in SPY, QQQ and XIV ( VIX inverse ETF) and when those 3 ETFs reach threshold overbought levels the system buys TLT.  The same argument is applied to the short side for TLT....threshold oversold on the SPY, QQQ and XIV triggers a Sell on TLT.

The dotted white lines tracking price action are the PSAR parabolics, a confirming momentum indicator that can be found on virtually every trading platform.