First of all, mirror image systems just don't work. Shorting upper ends of Bollinger bands, etc are a swift way to bankruptcy (except in period 2001-2002)
Its important to note that the CSFB hedge fund index for Dedicated ShortSelling actually had a Negative return in 2001. I mean, the market was down 12%!? and the professionals who are 24 hours a day trying to find stocks to short still couldn't make a profit. What gives? Shorting is not the opposite of going long.
Valuation shorting also is just useless. Look at TASR or ZIXI right now. If you shorted them 50% ago you might still be right but you're also bankrupt.
Wiley has an upcoming compilation coming out on shortselling where I've written a chapter on futures shortselling with a few techniques that have, at least, worked historically. But I'm a skeptic in general about shorting. Perhaps the best way to short is to use credit derviatives on stocks with big debt-equity ratios but I've never tested that.
Its important to note that the CSFB hedge fund index for Dedicated ShortSelling actually had a Negative return in 2001. I mean, the market was down 12%!? and the professionals who are 24 hours a day trying to find stocks to short still couldn't make a profit. What gives? Shorting is not the opposite of going long.
Valuation shorting also is just useless. Look at TASR or ZIXI right now. If you shorted them 50% ago you might still be right but you're also bankrupt.
Wiley has an upcoming compilation coming out on shortselling where I've written a chapter on futures shortselling with a few techniques that have, at least, worked historically. But I'm a skeptic in general about shorting. Perhaps the best way to short is to use credit derviatives on stocks with big debt-equity ratios but I've never tested that.