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Adam

05/23/14 12:44 PM

#37737 RE: Toofuzzy #37736

Hi Toof, That's what I've been doing with a few stocks that dropped, as I understood this was Ocroft's method ( not buying if the stock recovers to the Hold Zone). After the filter was fulfilled I would trade according to AIM, so if the stock was in a hold zone then no trade.

I would lose trades this way as a way of trying to protect against the risk of a deep diver. To make this method pay off you need a situation when the stock really does make a very large drop. But when this happens your portfolio suffers anyway, which is why I'm going over to ETFs to try to avoid this issue altogether.

I bet if you use crossover of moving averages you will face the problems.