Strategy Central

[capt_jmj]

Ken: You should probably remove the "VTO Mod" link next to Nocona's name, since that was just an earlier version.

Ken/MVP: Take a look at this...



This is beginning to make some sense, and look like you would like for it to look, i.e. a gradual, sustained rise in value. One of the things I have discovered is that the settings are not independent of one another relative to their effect on overall return, since changing one will open up more opportunities for others to have an effect, or change when they become effective. In other words, each set of numbers becomes optimized around a local maximum. In the set shown in the above graph, intuitively, the cash number still seems low, but higher values give lower results, and the other numbers seem about right. I suppose one could argue that going to cash early is not a bad strategy, because if the market reverses and heads down before reaching a higher cash setting, it is hard to go back long without cash, if you are using an all in/all out approach.

I will also note that the Cash early strategy is not inconsistent with Vaughn Okumura's original sell point of 50, and his was a Long only strategy. It is also validated by WalMart's concept of success, i.e. less profit per trade, but more trades equals greater profits, and in the limit, successful daytraders.