Monday, December 29, 2008

The 3x2 System and the Crash System



The '3x2 System' experienced a major setback during the market crash. It began to recover in October, but has since experienced further adversity. (See the plot above.)



The 'QQQQCrash System' also experienced major problems during the market crash, but has since made a substantial recovery. (See the plot immediately above.) Also note that the Crash system has a greater tendency for more variability in its equity curve.

Conclusion: Active trading can be very powerful, but it is probably best to diversify your methods and markets traded.

No comments: