Originally Posted by
Pascal
I introduced a confirmed short signal rule when I noticed at some point that large players were selling SDS while the 20DMF was issuing a short signal. I thus concluded that the short might be a false signal and overruled it at that time (early POMO days). It is on that base that I included the SDS confirmation in teh 20DMF rules - that was later on changed by the four inversed ETFs confirmation.
The important issue is not regarding the 20DMF. I think that the issue is to render the robot strong enough to sustain minimal damage in case of market direction error or even to overrule the 20DMF at some point. The solution I believe is in better sorting out the weak and strong robot trading signals. I am working on that. Another item is to revert to cash whenever the LT/ST signals are so completely apart - which indicates that the model has reached its programmed statistical limits. We are in such an exceptional situation right now.
Pascal