Both models are based on the same ATR parameters coupled with volatility momentum...in the first case we look for ATR stability, in the later we look for ATR volatility. The results for the past year as of Friday's close are posted below. Going forward as a general rule we will maintain a composite P/L as we rotate from one paradigm to the other depending on the strength/weakness of the paradigm Alert at the zero line on the chart, which we should have been keeping a closer eye on for the past 2 weeks. If we had, our P/L would mirror the MMR8 results much more closely.
As of 4:45 PM PST Sunday Dow futures are down 200 points, mirroring my expectations for a hard sell down at the open as a follow through to Friday's close. Our SPY line is the sand is 269...lower than that and it could get really ugly. Our short strategery is to get long at that level or before if momentum is clearly positive.....all the while being wary of a possible Trap Door opening.
