Cycle Trading

[Duma]

Here is an update for the RSI 2 strategy that I talked about in my post on Jan 15th used with QQQ. As of my original post QQQ had gained a total of 8.95 points since I started tracking in late Oct. Now we have completed the Jan02 buy for a gain of 7.4%, saved -5.2% during the Feb pb and have the start of a good gain for the Feb14 buy.

So the total gain since basically Nov is 25.52 points, 17.4% vs a B&H of 10.7%.

$10,000 invested (67 shares) would have yielded about $1700 or about the same as $700 invested in a 60% delta option. The risk for either plan would have been about the same since the cash option bought 67 shares and the option had a 60% delta (60 shares).

What is nice about playing the indexes is that there are no earnings report to worry about or other big events that can cause the stock price to suddenly tumble.

The best part about this plan is that all the buys and sells can be set up AH. Selling is a bit more trickey, but the buying is very cut and dried. Zero time is required during the day. I'm headed for my yacht now, LOL (for me the desert).

It really isn't that hard to make money. It just takes a plan that works and a commitment to follow that plan.