Or one could follow the cycles......
Or one could follow the cycles......
Ernst,
I just bought the book that you have referenced. I am going on a short holiday starting on Wednesday and will read the book on the road.
Meanwhile I have created a list of trades following my Combo-MF rules. I used TQQQ as vehicle because I believe (with the backtests that I have done) that I can rely on this trading model. The trades are these that the model should have generated from September 29, 2011 as Pascal has used this period for his ongoing "20DMF with gaps" study. For each trade I have deducted a 0.50% due to transaction and other fees that each trades has to wear.
I am looking forward to the new study from Pascal regarding the 20DMF with gaps because I believe this will further improve my model. Maybe I will not need the VSTpro model in the end...
PdP
Attachment 13997
The chart i previously posted incorporates 1 of three cycle methodologies.
The cycle i included in the chart is a natural cycle, however, i also create a geometric cycle and also an astronomical cycle. Which i have not shown.
It is possible through a technique that i devised to extract these cycles in these 3 different forms and extrapolate the results into the future therefore producing the most likely points in time for swing high and lows. I trade these, nothing else, i dont even worry about price.