Market Beaters

I understood the rationale behind the model and knew that it was sound. I don’t actually do that, but I know people at Goldman Sachs who were beginning to work with those kinds of models. They used what I would characterize as technical models built with fundamental data. I think that’s a fertile place for exploration. So, you acknowledge the possi

are referred to as position weights. The composite forecast can vary from +1 to -1 and anywhere in between. That tells me the systems can be full long at +1, full short at -1 or anywhere in between including zero, which means that all system parameters are crossed up and I don’t even want to be in the market.

targets have made the models perform less profitably. What you might find is, a model that trades a great deal and is highly accurate could be made more accurate by targets. If you’ve got a model trading 60 percent profitability and it’s a good model, the targets might add 5 to 10 percent to it. So, then you’re right seven times

and resistance systems? (They’d profit in the fallow times he’s describing). They work very well in the long run with longer parameter sets. I call them channel breakouts or the old Donchian method. Trying to trade these

They go counter to your human nature. We had an example of that a couple of years ago when interest rates were really low. We had been stopped out of our long bond position. We got a re-entry signal to go long again, and I looked at Rob and he

people who started with small stakes. But I’ve heard more stores about people who started with big stakes and ended

markets and/or creating systems. I have two views of the market, long term and short term. Fundamentals

that the system caught it, you won’t be able to ride through that. The average

comparing the same time frames. Let’s say you and I agreed to look at a time increment that we’d extend over a longer period, for example, a 40-day time frame on 70 markets and that we would extend