Sector Selection / IWM comparison, part 4

[Timothy Clontz]

Part 1, without Billy's pivot help:
IWM 6.51%
XLU 0.91%
Difference -5.60%

Part 2, with Billy's pivot help:
IWM -2.21%
XLK 0.00% (i.e. the trade never hit the stop loss and remained active)
Difference 2.21%

Part 3, with Billy's pivot help:
IWM -1.79%
XLK 1.31%
Difference 3.10%

Part 4, with Billy's pivot help:
IWM -2.11%
XLK 0.00% (i.e. the trade never hit the stop loss and remained active)
Difference 2.11%

I'll update when the Robot gives a new signal or XLK gets stopped out, whichever comes first.

[Timothy Clontz]

The IWM Robot for Monday is still long, so I've updated the totals to reflect the current returns:

Trade IWM Sector Difference Cumulative (Selection) Call
1 6.51% 0.91% -5.60% -5.60% XLU Long
2 -2.21% 0.00% 2.21% -3.39% XLK Long
3 -1.79% 1.31% 3.10% -0.29% XLK Long
4 -2.11% 0.00% 2.11% 1.82% XLK Long

Even with the debacle from the first trade without Billy's help the sector selections are showing a slight edge.

If we only count the last three trades that were done with Billy's pivots, the sector selections show a 7.42% advantage.

As I said in the previous thread, so far the most conclusive take from the comparison is that Billy's pivots are ESSENTIAL.

Also, when I originally designed the test, I wanted to trade at least 4 alternations between long and short Robot calls. These 4 results, then, are not even the completion of the first leg of the test. When the Robot goes short, then the first of 4 legs is complete.

I do want to say how much I appreciate Billy's help and his openness to testing different approaches. It is this kind of scientific attitude that will make better traders of us all.

They not only have a good system, but good people behind it.

Tim

[Timothy Clontz]

To paraphrase the Robot's IWM settings for XLK:

Magagement of an existing position
The XLK long position was bought at 25.95, with stop loss remaining at 25.44.

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Settings for a (hypothetical) new position

These are the trade settings for the trading day that follows the 7/29/2011:
The long entry price is 25.73 and the stop level is 25.18

***This is not a recommended position. This is only a live beta test with my own money.

[Timothy Clontz]

To paraphrase the Robot's IWM settings for XLK:

Magagement of an existing position
The XLK long position was bought at 25.95, with stop loss remaining at 25.44.

-------------------------------------------------------------------------------------
Settings for a (hypothetical) new position

These are the trade settings for the trading day that follows 8/1/2011:
The long entry price is 25.96 and the stop level is 25.43

***This is not a recommended position. This is only a live beta test with my own money.

The current price is 25.79. I'm tempted to tweak the stop down to 25.43, but I'll hold at 25.44 for the purposes of the test.