Saturday, October 27, 2012
T 3 Update +T2..10.27.12
Technically, the markets are substantially oversold but nothing says they can't get a lot more oversold before a rally kicks in. In any attempt of pick a bottom the I've always found it better to wait for the hairy bottom set up pattern (that is , actually see a bottoming pattern develop) and then ride the rally up.
The RM models remain in cash and that where I'm sitting for the time being.
The T3 signals have been a little late in detecting relative strength in the various components lately, which has cost the model a few percentage points.
To resolve this problem and improve odds I've sped up the momentum algorithm a bit, kicked XLP from the mix and added FXE (the Euro). This new model is shown below as T2 because it only takes positions in the top 2 ranked ETFs and if either of them fall out of rank during the week then those positions are closed.
In the near future I'll make the T2 software package available to subscribers only for a modest one time fee.
You will be able to build your own portfolio of 1 to 11 ETFs and then set the momentum rankings to focus on the top # of ETFs of your choosing. The program has an end of day data feed built in.
Alerts will not be included in the program as those are calculated on TradeStation and imported into the Mosaic platform within a different time frame.
We'll flush out more details on T2 later in the week as the final version gets set to go. I'll also post a few examples of what you can do with this platform to create a blend of portfolios to further insulate your risk.