The Three Systems Friday
Posted on October 2nd, 2009
Written by Richard
Posted in: N/A (old archives)
I have been trying to wait for the three systems to have a bad day so I could post something to sober you proxy groupies up… today is as close as it gets so far. I think that’s pretty impressive for un-researched entry criteria.
Recall that this is just to keep things interesting while we monitor the price proxy. You can see other posts on the systems by checking the price-proxy tag. In particular, this early post explains the rules for the systems.
System One
System One had 10 wins and 4 losses today, but keep in mind that waiting for the proxy to change color can mean big losses relative to the average win. It is of great importance that you let your winners run, to take advantage of the long proxy runs when they occur.
If I were to trade System One in real life, I’d probably go for the option to bail when VR4×2 turns color. This limits losses more often than it limits gains, it seems.
Here’s the screenshot (click to enlarge, losses are circled):
System Two
As I mentioned in last night’s lesson class, System Two is the cautious one, and because of that it’s often my favorite. It doesn’t generally trade or earn as much as System One, but today shows how slow and steady can win the race.
It had 7 wins and 1 loss (circled):
System Three
System three was very similar, performance-wise to system one. 10 wins and 4 losses. I think I’m probably going to drop system three from consideration, since it tends to be very similar to system one with slightly lower performance.
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© 2010 Richard Todd. I am not a financial advisor, and nothing on the site should be considered investment advice or actionable recommendations. I'm just an individual, saying what I think, and sharing my experiences.