May 30, 2011
Here are the results of the test using the original version of the QQQ and QID Trader trading script, as found on the old Wealth-Lab 4 site. (Note: the old Wealth-Lab 4 website has been shut down. It has been replaced by a new one using a different programming language).
(click to enlarge)
What stands out is that it had a hard time beating the Buy & Hold strategy. And as such, does not prove that it has a significant advantage over the Buy & Hold. As if the strategy kept you busy for 5.83 years generating over 15,000 trades to provide about $ 27,000 more than the Buy & Hold. Not what could be called a great performance! At least it survived and did not destroy your portfolio.
Then a question remains. What were the settings needed using the Alpha Power simplified equation to produce these numbers? Well, here they are:
(click to enlarge)
The original script did not use leverage, did not have a bet sizing algorithm, and did not have a covered call program, no piggyback trading module installed, and no excess equity buildup utilization function. It should be no surprise that the performance achieved was what it was.
Here are the corroborating charts produced on the old Wealth-Lab 4 site:
(click to enlarge)
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( click to enlarge)
Created on ... May 30, 2011, © Guy R. Fleury. All rights reserved.