Extreme Deviation Automatic Price Targeting - "X_DEV" - Bitcoin

[Tim Reese]

Hi Charlie - I think that you are right if you pick the right stock. You can certainly pick stocks that, with such conservative settings, will have lower returns with X_DEV compared to buy-and-hold (I'll have to look for an example). Some charts fit X_DEV to a tee, some don't. I'd guess that Myst was interested in particular stocks (ie semiconductors and such) and that X_DEV was developed to fit his preferences.

IMO you can be sytematic about suboptimal settings - and I also believe that you are likely to have less risk at a suboptimal setting. For example, pick one of the better performing X_DEV stocks, optimize fully, and start backing off toward tighter bands and lower multiples. Generally you reach some break point up to which the returns didn't decrease much, but beyond that they start to fall quickly. I'd guess that at that break point is the most likely place to get the best returns for the least risk.

JMO though - I've only been X_DEVing for a few months, and haven't made money yet (mostly because I'm more interested in biotech and genomics than the semiconductor stocks that have been doing well).

hth (hope this helps), Tim