etfmsolutions: TLT WIth the MOD Dashboard...04.06.16

Wednesday, April 6, 2016

TLT WIth the MOD Dashboard...04.06.16

This is the MOD view of TLT (20 year treasuries) as of Tuesday's close...a pretty dramatic signal to the short side which was played out in today's action...along with the bullish MOD signal for XLE forecast yesterday. I'm continuing to tweak the pair portfolios (not the algorithms) to find which correlated pairs really do provide a tell for impending reversals.
An attractive feature of this TLT/pair MOD using various world currencies as the B side of the pair is that virtually all the gain comes form the TLT side of the trades. This is an important distinction to make when analyzing the MOD dashboards. If the % returns are skewed in favor of the B side of the pair then there's a lot more trading involved to generate the posted returns and the trading model itself loses its utility as a consensus model focused on a single issue...in this case TLT.
The new MOD is still a work in progress as I build a portfolio of trading pairs but recent efforts have certainty been encouraging.

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