Automated Trader – 10-30-2008
Three months have passed since the last analysis of the auto trader. After broadening the universe of stocks to screen, we’ve had a lot more action. Unfortunately, the recent volatility has made wild swings, which give profits in my system that are nice, but unrealistic on a long term basis. Scanning through these numbers show things that are double digits above any backtesting data, meaning that my backtesting methods suck (which would be nice) or a VIX over 50 can do funny things to the market (more likely). For anyone else that’s testing a new system right now, automated or not, don’t trash a system that doesn’t seem to be working right now and don’t get too cocky with a system that is. We are in unusual market conditions that are as rare as hen’s teeth, and what works today may not work for another 10 years. We’ll see how it’s going in another 3 months…
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