Trade Switch

The $NYHL indicator gave a switch from short to long last weekend. The model sold QID and purchased QLD, using Monday's opening prices.


The earnings from July 2006 to March 2009 indicates an overall profit of 349% or an annual return of 131% per year. Compare this to a period when most were down approximately 50%, requiring a 100% recovery to make breakeven.

As can be seen the false signal in January was expensive. I am thinking about how to improve the model, but most precautions delay the purchase to assure the signal doesn't reverse. At the moment, I'll take solace the model outperformed 99.9% of "professional experts" and in an adverse year proved enviably profitable.