The old model won today as NDX ended up a couple of points and even the new "averaged stochastic" rose. But really the market didn't go anywhere much. Tomorrow these various stochastics almost absolutely have to fall due to the way they are computed. Will it be a down day finally? One potential trigger is the beginning of earnings season. Alcoa reported after the close and did not meet expectations.
I won't be updating the old model unless the new doesn't prove to be better in actual trading. In simulated trading since January 1st and June 30th this year it strongly outperforms the old model, even if today, the first day of using it was not one of those outperforming days.
I remember Teresa Lo from years back when she posted on Silicon Investor. Now she also has a blog and my impression is she has a similar attitude to me somewhere between academic finance and technical analysis and trying to work out objectively what works and what doesn't. She also emphasizes the very important role of psychology in trading success.
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