Systematic Investing Group

[leapyear92]

Hello Everyone!

Well, I have just taken a gander at Husky and ran VTSS thru the sychrovest engine. Sobering. Although Husky ruled both systems were dissappointing at best. Drawns were untenable, although in the end both could show a profit.

I have come full circle in my thoughts. These systems are becoming increasing complex to fly in the face of the basic traders axiom which is to never average down.

Why is it our nature to strive for this end? I believe that I am mentally conditioned to feel more comfortable averaging down that trading. Don't know why but I am open to suggestions.

My latest thought flows to Mysts MRI. An interesting concept. As I have pointed out to Myst MACD should be replaced by PPO for various reasons. There is also I high correlation among his variables. In other words %R and Stochastics are essentially the same. Just as a 14 period RSI has an R squared of .98 compared to a 28 day ema. So he is essentially measuring the same thing more than once which hoses up the weighting.

I do, however think the concept has merit. It is essentially the output of many Neural/Genetic algorithms. I am thinking of a technical composite that could be looked at once a week to take an all or nothing stance with a reasonable stop. No optimization would be allowed. The same system would be applied to all tradeables.

The beat goes on...

Regards,

Leap