June 5, 2011

After the Livermore Challenge’s 2nd act, which made its point quite clear, there was only one question left opened and that was what about the other dataset, the third dataset, presented way back in the series. Again, only one way to know, and that is to run the test using the same script.

You still don’t know what the future will bring. You still don’t know which stocks will outperform. You still don’t know how much profit any of the stocks will bring.

But, based on your pre-set trading behavior, you know what you are going to do when the price of a stock triggers one of your entry or exit points. You did pre-program your whole trading behavior from the start, after all.

This will end the presentation of my tests on the modified Livermore Market Key script. The rest, meaning going to higher levels, will go private.

The test based on the third dataset can be found HERE.