Random Walk Theory Proved, once and for all.

[Wayne Gibbous]

Quote from EOD Traders:

NASDAQ 25-WMA Strategy
( NO LEVERAGE )
32 Years Plan

Buy LONG Signal when the Nasdaq weekly price crosses the 25-WMA UP.

http://www.eodtraders.com/

Long only. Buy 1000 QQQQ (Nas100) on WMA25 upward cross. Close position on downward. Weekly trades on next bar only, starting capitol $100k, starting date 12/3/1990:
<code>

var Bar: integer;

for Bar := 25 to BarCount - 1 do
begin
if not LastPositionActive then
begin
if CrossOver(Bar, #Close, WMASeries(#Close, 25)) then
BuyAtMarket(Bar + 1, 'WMA Buy Signal');
end
else
begin
if CrossUnder(Bar, #Close, WMASeries(#Close, 25)) then
SellAtMarket(Bar + 1, LastPosition, 'WMA Sell Signal');
end;
end;



Ending Capitol: $149,863.
Annualized Gain: 2.25%
Number of Trades: 49
Winning Trades: 23
Max Drawdown: -$53,242.
PF: 2.56
Sharp: 0.37
</code>

 

[EOD Traders]

Thanks Wayne
The 25 WMA cross
needed the 32 years. Thats for sure.
I had not run the returns in several years
in a shorter time frame.
I would guess the price cross of the 20 DMA
faired better in the shorter time since 1990 period.
I don't use either for trading.
Just interesting to me.
If I remember correctly, the 20 DMA faired
well in the 1987 Bear market.

Jeff

 

[MarkBrown]

i don't play by others rules and i don't play others games.

that's why i am mark brown.

mb

Quote from mu200411:

Oh! Great. I believe you, Mark Brown.
But if you would like other ETers to believe you too, you should show some proof. No, you don't have to reveal your trade secrets.
Just tell us what the Market will do in 7 consecutive time frame;
Monay UP/Down; by x % (February, 2008, every 1 hour, or every 10 minutes will be OK).
Tuesday UP/Down; by x %
Wednesday UP/Down; by x %
Thursday UP/Down; by x %
Friday UP/Down; by x %
Monday UP/Down; by x %
If you get 7 out of 7 correct then you can predict sp for sure.
If you get 6/7 excellent.
If 5/7 very good.
If 4/7 you still have an edge.
If you get the % change to the .1% of the sp, all fund manages will be looking for you.
If .2% that is excellent.
If .3% very good.
If .5% you still have an edge.
If 1% that is the normal daily range now.