20dmf

[asomani]

I think there is some confusion here with the IWM robot performance.
60% of profits (not time!) came from LT "trend-following" trades and 40% from ST "mean-reversion" trades. But ST trades are usually active when the 20 DMF is neutral, so there is no clear correlation.
Billy

Thanks for clearing that up, Billy.

So, regarding time, I guess it's a question of how often markets are trending vs. range-bound. Based on your experience and knowledge, what would you say this is? I've heard some say the market is trending 1/3 of the time and range-bound 2/3 of the time. Is this true?

Perhaps we have been spoiled in recent years (2008, 2009, 2010) with some very nice market trends.