Replies to post #60142 on ETF SWING & DAY TRADING

[Duma]

Sounds great, we will watch for the next buy.

One more thought, all of the VTO history is based on Q's. For even the last buy, Q's got a buy signal, but IWM didn't, however both rallied nicely. Because of the volatile nature of IWM, I am just not sure of buy signals based on IWM. For the present I will still use Q's for my signals but trade IWM/TNA.

[Y worry Murray]

So true. I always had a "problem" with the VTO strategy, because it was too quick to buy in a strong downtrend and too quick to sell in an uptrend. If you can filter out the bad buys, and stay in trades that continue to work, it's really a winner!

So true gloe! See notations on chart; this may be a solution for bad buys, but should be back tested for optimum RSI 5 buy levels. Interested Duma?

With regard to staying in trades that continue to work, I can see no way to predetermine which trades will work, therefore selling VTO trades above RSI 49 remains.

However over the last year all of the sales off of the SMA 5 of the TRINQ with confirmation of the downtick of the RSI 5 above 70 resulted in VTO buys sooner or later and can therefore be held short until the RSI was below 28. This was with the exception of the Sept. 2nd sale, but this was after a very oversold market put in a double bottom so a higher low was to be expected.

I think that this short will only work in a trading range market. In an up trending market I think one could safely hold VTO buys but not shorts.