Monday, March 2, 2009

New 3 Models

I have concentrated on pattern recognition with respect to the NDX100 (Nasdaq100 index) and previous blogs at this site refer to that. Those concepts are incorporated into these models. All trades are made on the close of trading.

All models trade long or short the NDX100 index. You may use ETF's that mimic the NDX100 or you may trade the QQQQ, or even a mutual fund that tracks the NDX100. The first model is called the "In and Out" Model. It trades the NDX100 for 1-3 days (long or short), then may go to cash (money market) for a few days, then back long (or short) the NDX100 again for a few days. It is "in the money market" about 48% of the days.

The second model is called the "Continuous" Model. At the close of each day, it is either long or short the NDX100, it is never in the money market.

The third model is called the "short-term, 3-4 day" Model. It looks for a good set up in the NDX100 and goes long or short for 3-4 days. It trades on the average once every 3 weeks. Over the past 26 months it has had 33 trades, about 76% are profitable. If you exit (to the money market) with 1/2 of your investment on the close the 3rd day, and with the other 1/2 on the close the 4th day, then the profit over the past 26 months has been 82%.

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