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
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:
I trade the system using the
RRY which is a Rydex UWM 2x Russel 2000 ETF.
Current Status of the system is:
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.
To become a member simply register at the website in the right hand column.