Larry's Market Comments at Critical Points

[S Chun-Li]

Larry congrats on a great thread. Unfortunately I dont have the programming skills to run as many tests as I would like to but here is a simple system for trading Nasdaq 100:

LONG TRADES
Buy when number of stocks above 10 DMA < OPT1
Sell when number of stocks above 10 > OPT2

SHORT TRADES
Short when number of stocks above 10 DMA > OPT3
Cover when number of stocks above 10 DMA < OPT4

I have started with OPT values:

OPT1: 11
OPT2: 29
OPT3: 89
OPT4: 71

The system produces a gain of 1499 Nas 100 points since 10/12/2000 when Nas 100 closed at 3004. I have no datafor prior dates. Thanks to Les on SI for providing the raw data in his many posts over the years.


I am playing about with it as follows:

1) Applying percentage stop losses
2) Adjusting OPT1, OPT2, OPT3 and OPT4 based on the success of the prior trade.