Strong and Weak signals

[Adriano]

Pascal,

Just a few days ago I was thinking to modulate the robot signals in three ways, according to the neutral, long/short, strong long/short labels. But I see that in your Long_Weak signals table you only have strong signals and standard ones. That is, two types. My real question is: is it worth having three types of weights or two make more sense?

Many thanks.

[Pascal]

Pascal,

Just a few days ago I was thinking to modulate the robot signals in three ways, according to the neutral, long/short, strong long/short labels. But I see that in your Long_Weak signals table you only have strong signals and standard ones. That is, two types. My real question is: is it worth having three types of weights or two make more sense?

Many thanks.

The best is to back-test a portfolio that trades both GDX/IWM using the two levels and then using three levels. The idea is to be 100% invested whenever you have at least one strong signal. If you have two striong signals, you are 50/50 invested in both.

I'd like to do that, but I am working on some urgent specifications right now for the real-time system.

Pascal