Rule-Based Trading Systems

[sjd56]

Hi - For those interested in using the signal as late as possible, Direxion provides an alternative to Rydex/Profunds. They allow trading right up until 4PM. Also greater leverage ( 2.5x on funds tracking American indices - SPX, NDX and RUT have corresponding bear funds ). Also a nice pair of emerging market funds ( bull/bear, 2.0x ) that can be very profitable. Some recent work I did indicates that Merlin's 2006 signals have actually been more profitable on RUT 2.5x and EEM 2.0x than on NDX 2.0x. The work was done on the indices themselves ( and substituting EEM for MSCI EM ) because I haven't got around to writing the code for actual fund-switching yet. They do not seem quite as accurate as Rydex/Profunds in acheiving their stated goal ( daily 2.0 or 2.5x benchmark index ), but sometimes this works in your favor and sometimes not. Maybe this is explained by the later cutoff time? But I suppose in order to delay the signal everyone would need to move their accounts, which seems pretty unlikely 8-)

Steve