June 4, 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 data set, the third data set, presented way back in the series. Again, only one way to know and that is to run the test using the same script. So here it is:

 Livermore Challenge 3rd Data Set

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The same kind of observations can be made as for the two previous tests on this same script. High profit to loss ratio. Relatively high compounded annual return. The sum of all stop losses amounting to about 1% of total profits.

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

It took me quite some time to develop this methodology, even more, to verify to my satisfaction that it worked. A lot of time has been put in building the mathematical foundation that could explain the trading methodology. And now even more time is being spent in the implementation phase. I see a progression in all these test results and it points to even higher returns being possible. 

(click to enlarge)

ACTG ALLT ASNA BGC
BGU BKE CAB CERN
DECK DGIT DIOD DKS
DNDN DSW EXXI HANS
IDT INTL IRBT ITMN
JOSB KAMN LANC MERC
NILE NVLS NVO PCP
PRXL PSMT QSII RNOW
ROK ROVI SIMO TTMI
VECO VICR WAVX WRC
ZAGG ZOLL ZUMZ  

( click to enlarge)


Created on ... June 4, 2011,  © Guy R. Fleury. All rights reserved.