Another StockPickr system that I follow is the '3x2 System'. The system as disclosed trades all of the Nasdaq-100 index stocks. I only trade 20 stocks from the Nasdaq-100 to reduce the number of trades. The plot above shows the equity curve for the filtered version of the system over the last 3 years.
The system has solid statistics with a win rate of 70% and an average return per trade of 1.6%. The filtered version of the 3x2 produces about the same number of trades as the 'Crash System' I mentioned in yesterdays post.
Each of these systems has good potential. However, they each can experience significant drwadown during open trades. One of the modifications I have made is to limit the time each trade can be open to avoid the occasional big wipeouts that these stocks can experience.
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