etfmsolutions: A First Look at the new Composite Model...07.28.15

Tuesday, July 28, 2015

A First Look at the new Composite Model...07.28.15

Here are 2 versions of the new M3 composite model that integrates multiple risk parameters and momentum/mean regression algorithms into a single trading entity. Both versions use 5 inputs but one uses the leveraged ETFs SSO and SDS + SPY,SH, XLU and the other uses XIV and VXX + SPY, SH and XLU. Depending on your risk tolerance and trading goals one of these two should provide a solid foundation for a daily trading format. Note the different auto limit stops for the 2 models....we have to allow a lot more "breathing room" for the XIV/VXX model since the beta is normally 2 to 3 times greater than the leveraged SSO and SDS.
There are a few nuances of these models that I'll discuss in coming posts before one or both are added to our daily dashboard. Click once on the chart to enlarge.
New M3 password activated at 9:00 PM PST tonight (Tuesday).

Commentary and Updates

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