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QQQ TRADING / Nasdaq100 Trading System
Jan 21/07 - There are a number of issues with fixed trading systems, non greater than the human desire to override them and the quest to optimize. Readers of our site will have noticed two systems - one for the QQQQ and the other for the SP500. Often they are in contradiction of one another and the investor needs to chose which one will give the better signal (choice). It has been our experience to only trade the signals when they are both pointing in the same direction. If we add in the weekly volatility then more confusion arises as volatility only has a 65% correlation with the markets but most of the bull market moves (85%) has occurred in periods of declining volatility. Our equity strategy is to remain bullish and we are attempting to reconcile differences when more trading systems are used (ie 5 separate strategies). Readers advice welcome.