I am trying to objectively quantify the input from various tools external to EV that I found helpful in discretionarily guiding my aggressiveness/position-sizing in the IWM robot setups and the 20 DMF model. All correlations are made with IWM only, therefore they are not optimized for other indices like SPY or QQQ.Originally Posted by EB
It is not supposed to become another market timing model ( rushing to chase the market after a signal change), but instead it is trying to track when market structure by itself is in favor of long or short setups with entries on pullbacks. For example in a weakly correlated market structure score like now, it is dangerous to buy pullbacks as long as you don’t have the 20 dma cushion supporting the score.
It is also a dynamic scoring system because you can improve daily the fine-tuning of the correlations as more data gets collected over time. I am far from being ready to present it in detail because I am still only in the creative process and I’d like to let expert statisticians check and refine my findings before defending them publicly.
Billy
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