Quote Originally Posted by shawn_molodow View Post
Hi Pascal/Billy/Others:

I decided to follow the IWM Robot and sit through the last hour +7% IWM advance on Tu, Oct 4. I watched the entire 45 min move ... painful, for sure - but, hopefully,

I saw Pascal's warning note on the Oversold (OS) condition and possible close below -90 giving a 20D MF short cover signal (but, that the Robot may or may not take 20D MF signal). I also recall seeing the latest OS chart showing -83, so once the intense buying started I figured there was no way the OS would *close* below -90.

A few Q's:

1. Did OS close below -90 on Tu?
2. Is the short covering oversold 20D MF signal triggered on intraday moves below -90, or only the close?
3. Did the Robot go into Buy mode due to 20D MF's move above the trigger level? or, some other Robot reason?

1. OS did not close below -90, but at one point, it was at -92
2. The Robot and the 20DMF work only on signals that are triggered at the close. With the RT system, this will change, but only if we can have it automatic (not relying on me to send alerts/post messages)
3. At the close, the 20DMF issued a buy signal because it was in OS, and the OS signal closed more than 3 points above the previous day's level while the MF was positive for the day. On a 20DMF buy signal, teh robot changes his statistics table both for the short and the long evaluation and issued a buy signal. A RT signal would have probably closed the short position in strength as soon as the OB/OS signal would have crossed below -90 and would have entered a long position before the close, but I cannot say when excactly.


Pascal