Replies to post #28780 on ETF SWING & DAY TRADING

[positiontrader]

tclark 1,

Yes,I think that is the answer.

Refer to gloes' post

http://www.investorshub.com/boards/read_msg.asp?message_id=10565518


I suggest using smart money below 40% which by the way we are at now for the first time since 1-04.

When it hits below 40 the system should override to cash (or short ,consider testing both ways) until the next RSI5 or the next short signal occurs.

That should help returns.

Regards

Marc

[stock-trace]

tc strong. couple things- a system which trades at this frequency may possibly be too quick for sentiment indicators. will check on those dates. after all, youre going long at anytime rsi5< 28. that is the achilles' heel of this system.

if you look at the vxo, consider a 5% deviation from the 10sma of the vxo. anything beyond that represents a short-term extreme which should be marked by a short-term reversion to the mean. you may want to wai

i think this with the triple nasi may be of help. ie: if triple nasi negative, rsi , 28, then wait for confirmation of vxo if vxo already beyond 5% form 10sma. confirmationi would be vxo reversion in the form of a cross out, then back into bb50, 1.0 or 20, 2.0. or it could be vxo crossing back over 5sma. or look for namo to cross below -50, then above it again in combination with vxo.

thx again

st

[mr_cassandra]

Re vxo versus buys. In theory a very low vxo number could negate a buy but I have never a market that couldn't go higher on a low vxo reading. Euphoria can last way longer than commons sense.

I've gotten huge value out of high vxo but little out of low.