Following yesterday's M11 post here is an update of those files with the active 2 Day Alert filter plugged into the performance metrics. The strategy is quite simple...only take trades when the STOP line (purple) s above the Trend line (green). This tactic culls out the "maybe"trades and focuses the odds in favor of highly likely winners. It's basically a risk avoidance strategy, which is the fundamental goal of all Mosaic models.
Our premise yesterday that the mean reversion model was about to go vested based on the impending cross of the STOP line and the Trend line played out perfectly in today's action.
Compare the metrics from yesterday's post with today's to better see the advantage of the ALERT.
