Parallel trading activities

[Pascal]

Thanks, Pascal, I understand the equal weighting of EV across all sectors, each comprised of different aggregate market caps.

To keep numbers round, say you have a choice of 1000 stocks for 100 sectors out of a population of 10,000 stocks of *different* market caps. If I were to draw a different representative subset of stocks for each sector (on average, only a 1/10th of the overall population will be utilized) and then calculate the equally-weighted EV (or 20DMF), would I possibly get drastically different results?

Trader D

I do not know! Maybe you'll get similar results. maybe not. What else can I say. We would really need to test that idea. This is a pretty big work.

Pascal

[TraderD]

I do not know! Maybe you'll get similar results. maybe not. What else can I say. We would really need to test that idea. This is a pretty big work.

Pascal

Pascal, I can appreciate the amount of work necessary to decipher this fundamental aspect of the 20dmf signal. As you state, the rationale for sector composition may not be obvious and only extensive testing can answer this question. Thanks again.

Trader D.