3x2 Method and IBD-100

Using the 3x2 method with the IBD-100 stocks could be a significantly profitable approach! Take a look at the equity curve included above. The 3x2 method was tested using this weeks IBD-100 stocks that have a history of a least two years (93 stocks). I realize that the IBD-100 list changes each week, but it has some similarity week to week. In particular, take a look at the spectacular performance in the last two months where the lists may have been close in composition to this weeks list.

Further investigation is needed to determine how stable the IBD-100 list is over time. Should N consecutive IBD-100 lists be combined into a single trade-able stock list? How long should a stock be retained on the trade-able list?

How can the list be filtered to reduce the number of trades? Currently the method would be making too many trades for the amount of money I have available. The IBD-100 also contains many small capitalization and low volume stocks. When using the 3x2 method with the NASDAQ-100 stocks, I use a filtered list of the top 20 stocks to hold down the number of trades and increase the average return. The NASDAQ-100 stocks list is more stable than the IBD-100 stocks list so a filtering scheme may have to be different to work with the IBD-100 list.