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Note on xl_ sector etfs
Pascal noted today that they now have sector models running for the nine XL_ sector ETFs that I also monitor on my own "Small Portfolio" model.
Please do not confuse the two. My model basically uses long term non-effective volume for a 1 to 2 quarter expected trade. Pascal's uses short term effective volume for a 1 to 2 week expected trade. A few months ago Pascal analyzed my own sector calls against his IWM robot timing and found them to NOT be compatable. In fact, they worked against each other. Trying to use to two together had worse returns than letting the two simply act on their own.
The reason, I suspect, is that we are doing opposite forms of volume analysis. Mine is a mean reversion trade, and Pascal's is a momentum trade.
PASCAL HAS THE BETTER MODEL. He has multiple computers working in real time with minute by minute data. I have one laptop working on daily data. Yes, my model works -- but if you like mine, you'll adore what Pascal can do.
But whatever you do, please do NOT mix the two!
Tim
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