Replies to post #84 on Systematic Investing Group (SIG)

[lostcowboy]

A Modification to straight DCA! Part Two!
After studying how my sisters mutual fund behaved in the super bull and bear market, I felt that we could put the 200 day moving average to good use as a trigger line for when to be in and out of the mutual fund. I did a search and found a web page that explains this better than I could. http://www.tradertalk.net/tutorial/asalot.html

When I looked at my sisters fund I found that there were about six times during the bull that the fund price broke through the 200 day MA, they only lasted for a short while two or three months. But on the seventh/eighth time it was the start of the bear market, there were no time during the plunge that the fund price broke through the 200 day MA in a upward direction. As a matter of fact the fund price stayed low, just bouncing up and down a little bit, until the 200 day MA had dropped down low enough to reach it. But once that happen it did go through the 200 day MA and started the rally that we are in. My sisters mutual fund was pnopx. If my sister had used this simple rule she would be sitting pretty high right now.