I apologize for the late post. My wife dragged me to some Prince/Purple Rain 25 year anniversary screening in Prospect Park (Brooklyn) last night and I was forced to drink heavily to prevent immediate blindness.
There are no exit signals being generated for any of the securities in the model portfolio portfolio but Thursday’s weakness generated a lot of new entry signals for the system. None of these will be taken in the model portfolio as it is full.
[[BPZ]] Church & Dwight Co., Inc. [[CHD]] [[CRI]] Cirrus Logic, Inc. [[CRUS]] Cymer, Inc. [[CYMI]] Dolby Laboratories, Inc. [[DLB]] Dr Pepper Snapple Group Inc. [[DPS]] [[ELGX]] EnerNOC, Inc. [[ENOC]] Hologic, Inc. [[HOLX]] Johnson & Johnson [[JNJ]] Kulicke and Soffa Industries Inc. [[KLIC]] Mattel, Inc. [[MAT]] Merck & Co., Inc. [[MRK]] Polycom, Inc. [[PLCM]] Penson Worldwide, Inc. [[PNSN]] Red Hat, Inc. [[RHT]] Schering-Plough Corporation [[SGP]] Tupperware Brands Corporation [[TUP]] Verigy Ltd. [[VRGY]] Verizon Communications Inc. [[VZ]]
(Brandon posting for Woodshedder)
Will there be a bear market analog to power dip? maybe “power rip”?
We have a couple of short systems and always something under development but I’m not sure they will ever make it to iBC. Perhaps to the PPT but doubtful in the public area. That will ultimately be up to Woodshedder & Fly but frankly, there is little to no incentive currently to risk our edge for the benefit of internet leeches.
Wood and I both trade this system (Power Dip) as part of a more diverse basket of systems and it the only reason is was made “public” is because Woodshedder wanted to use it as an instructional tool on this blog and it is one of the simplest and easiest we have to trade EOD.
I wasn’t looking for free. Wood had said earlier that Power dip would eventually be for pay. I’m still in the “test drive” phase. I’d like to add a system to my discretionary trading. The hard part is finding one that fits my style. I like power dip because it seems like a natural extension of my discretionary style. Previously I had purchased and traded several proprietary systems, but none seemed worth the effort (profit and time wise) nor did they reduce my draw downs which is my main reason for wanting to add one. I also tried to develop my own systems(with another trader), but again they did not provide a sufficient edge either in reducing overall risk or in profit to continue to trade them.
Didn’t mean to suggest you were one of the leeches 🙂
Kick the tires for a few months (it really takes that long) and see how it works out. That is why we are posting it.
Multiple (uncorrelated) systems are really crucial for smoothing out equity curves and that is much easier said than done. If this system is similar to what you trade already, it may not help smooth out your equity curve as much as you’d like, particularly if they have a similar time horizon. However, it will probably improve your equity curve by generating more trades with a positive expectancy.
It is ironic that in order to really smooth out your equity curve and improve draw downs, you will more than likely need a system (with positive expectancy of course) that is conceptually different enough from how you currently trade to be very uncomfortable. At least in the beginning. The greatest challenge would be to have enough confidence in it to stick to it long enough for the law of averages to play out.
I am currently working on overcoming this very issue in my own trading.