Zweig / Ned Davis 4% System

Rules:

Buy long if the Value Line Index closes up 4% for the week

Go to cash if the Value Line Index closes down 4% for the week

Simple.

The rational behind the trading system is to trigger long off a 4% thrust, a move which usually indicates upside momentum.  The system attempts to capture a bulk of the follow through momentum.

On the downside (going to cash) the system marks its exit by a 4% down week, indicating waning momentum and expected follow through weakness.

I have been trading this system since March of 2009 and here are the trades thus far:
Trades:

I trade the system using the RRY which is a Rydex UWM 2x Russel 2000 ETF.

Current Status of the system is:
Status:

Since the system only trades on Fridays, members will get a warning after the 4pm EST close on a Friday for a Monday entry if the system is setup to trigger on the close.

You can download our TradeStation Ned Davis Indicator and Strategy for BackTesting at those links.

To become a member simply register at the website in the right hand column.

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