etfmsolutions: T 3 And Lazy Man Updates... 9.9.12

Sunday, September 9, 2012

T 3 And Lazy Man Updates... 9.9.12

Note a couple changes to T3: The RSQ (linearity) metric has been added to further define the reliability of the model. The higher the linearity value, the more consistent the equity curve. The Momentum rankings have been reduced from 18 to 15 days or 3 weeks. I think this provides a more than adequate view of the momentum dynamics and let's us integrate weekly bar models more effectively (jn the future).

Note that the Momentum rankings should now be adjusted on Monday's Open rather than Friday's close.
This decision is based on a recent look at how the markets have performed between Friday's Open and Monday's Close and it reflects a small edge that can be achieved by trading Monday's Open...which actually has been consistently lower than Friday's close during our lookback period.

TIP has been replaced by IEF in the T 3 component mix. WHY?. Because now all the Lazy Man components are reflected to the T3 mix and there's no need to replicate (and confuse) readers with multiple views of the same data. That applies to the Situations version of the Lazy Man where all 6 components are held in equal dollar amounts and it also applies to the allocation version of Mosaic (shown below) that holds varying % of the capital account in each of the 6 components.

Commentary and Updates

Mosaic Solutions commentary is typically published daily as time permits and market action warrants.
Posts feature Mosaic model updates including delta neutral stops, VIXEN directional trades and PONZO forecasts.

NOTE: Posted risk exposure indicators, signals and metrics apply to Mosaic models only. They are not directly correlated with price movement in the major market indices and can not be used to forecast directional changes in those instruments.
Each Mosaic model is a unique blend of risk factors and must be treated accordingly.

TRENDX is a proprietary Mosaic market signal that blends volume, RSI, momentum and rate of change.

ETF Mosaic Solutions and the editors of Mosaic Solutions are neither an investment advisory service nor registered investment advisers or broker-dealers and do not purport to tell or suggest which securities or currencies readers should buy or sell for themselves.
This site and related software products are for research and educational purposes only, and nothing herein should be construed as an offer to buy or sell, or as a solicitation of an offer to buy or sell securities, or to provide individual investment advice.

Investing is risky and past performance, whether actual or tested, is no guarantee of future results.
Any quantitatively derived allocations referenced herein should only be starting points for conducting your own research.

You are responsible for your own trading decisions and resultant gains or losses. When in doubt, please seek professional guidance from a registered adviser who can respond to your personal needs and risk profile.