May 1, 2011

Lately, I made some modifications to my holding functions. I did not test them extensively as the first results were more than impressive and I did not want to show too much. As I've posted on the WL4 website, here is one picture that speaks for itself.

 (click to enlarge)

I've traded IMAX before (but not with such results) and to me, it was a reasonable choice to include in my tests (a "what would have happened if"). The improvements were accomplished using a modified version with my own trading procedures applied to the Neo Master V2 strategy (again from the old WL4 website). The numbers were remarkable: even on a single stock, one could achieve outstanding performance: in excess of 110% compounded return over the 5.8-year test.

I'm still in the improvement process where I aim to implement safety procedures to keep most of the generated profits. It is a study on where stop-losses should be placed and when parabolic exits should be used to optimize return whatever the future may bring. All is done within the underlying trading philosophy presented in my research papers. Some of the areas mentioned in my papers have not been covered here such as using leverage to increase performance or add a covered call program on the increasing inventory over time. Both these measures would push performance higher. In all the tests described here, no leverage has been used and no covered call program considered. I still have a lot of work ahead of me.

This new model showed the way for more improvements and as a consequence higher overall returns.

Created on ... May 1, 2011,    © Guy R. Fleury. All rights reserved.