Updated the I1 rule set to include tactical rules for those periods when I1 is NOT in a buy signal or sell signal, but I1 is trending nonetheless. The following is the complete rule set so that you can see what I will do in advance, just looking at the upcoming I1 charts.
1) Buy signal rules:
a) As long as next I1 peak > 5.5 buy the low or 0 and exit at peak or when I1 returns back to 9.0, whichever is less. Initial position will be 20% of capital. Position can be added to when .3% upside break of 15-min, 54-unit M/A
b) If low<0 then buy half the distance from low to 0.
c) Use peaks as opportunity to take profits. Ignore selling a peak if the subsequent trough > 4.8 (stay long).
2) Shorting signal rules:
a) As long as next I1 trough < 3.25 sell the peak or 8, exit low prior to rally above +3. Initial position will be 20% of capital. Position can be added to when .3% downside break of 15-min, 54-unit M/A
b) Exit low prior to rally above +3. If low<0 then cover at half distance from low to 0
c) Use troughs as opportunity to take profits. Ignore a trough if the subsequent peak < 0 (stay short).
3) In the absence of buy and sell signals the tactical rules are:
a) I1 uptrend, OK to buy small at I1 bottom, but must wait for .3% upside break of 15-min, 54-unit M/A before buying more. Cannot short until 1/2% downside break of 5-min, 380 unit M/A.
b) I1 downtrend, OK to short small at I1 top, but must wait for 1.2% downside break of 15-min, 54-unit M/A before shorting more. Cannot go long until upside break of 5-min, 380-unit M/A.
4) For longer-term traders:
a) stay long until final peak or until it falls below 9.0, whichever is lower.
b) stay short as long as next peak <3.0.
c) ignore I1 moves lasting less than 1 week or with a swing < .5.
Here is the current I1 chart. Try taking a swing at it with the rule set (hint: we are currently not in a buy or sell signal).
Subscribe to:
Post Comments (Atom)
Hello Steve, thanks for the blog your insights are very appreciated. What is your projected timing for an ultimate market top basis the I1 values? Is this the 4/2 date you cited. Many thanks.
ReplyDeleteI'll address your concern in the Daily Commentary. Thanks for the comment.
ReplyDelete