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Friday, July 10, 2009

Three ring circus

I was running three separate trials to test some theories and a service.

1) a "unique" signal service that provides a stock call for possible trades

2) a parallel self generated scan that produces stock picks in a certain range

3) a plan based on longer weekly period moving averages

I chose to use my account for the signal testing figuring that perhaps a pre-tested system might generate some real profits, which would be cool and be "easy" for some modest gains. My plan was not to stick with this unless it was wildly successful... which I doubted it would be.

Now, I have tried out a few systems in the past when they have had "free trials" and I have always cancelled and either been refunded or just not billed. I must say that they have always been good about the cancellation and have been above board when it comes to processing and responding. It's too bad the performance was not up to the claims.

So far anything that I have tried I have not really written about as they were just for my curiosity and none were anything to write about, nothing has changed. In all cases I wanted to see how they worked and get inside the system, do a bit of comparative backtesting and some real time testing. What I have found is that any system is only another indicator like any other. Some claim to have the "secret" to making money in varying quantities but none are more than that. I really knew this all along as nobody can forecast what a stock is going to do.

Curiosity.

I am down to # 3) a plan based on longer weekly period moving averages. I am adding the Point and Figure charting to this to supply some entry and stop settings and using the averages more as a general guide to help with the trade direction bias.

I am down to a one ring circus now and I already feel the calm as a result.

Jeff.

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