Ranked Relative Strength by Jeff Parent
ARTICLE SYNOPSIS ...Ranked Relative Strength by Jeff Parent
How do you know which sectors to trade?
Here's a system that will identify the
strongest sectors so you know what you
should be chasing.
When Charles Dow started
recording his average in
the late 19th century (Figure
1), the markets were
essentially a one-horse
show. Transportation-related
stocks dominated
the blue-chip segment of
the markets and were the most actively traded. Dow used them as
a proxy to gauge economic conditions.
He measured the simple average price of
a basket of predominantly railroad stocks
and compared the result to the 100 level....
AUTHOR: Jeff ParentDATE: MAY 2004SUBJECT: New Techniques
Testing Signal Efficacy by Jeff Parent
ARTICLE SYNOPSIS ...Testing Signal Efficacy by Jeff Parent
Here's how you can evaluate how effective
your trading system is.
ot unlike new pharmaceutical
drugs, buy and sell
signals must be put
through rigorous tests to
determine their usefulness.
Only when signals
prove profitable repeatedly
should the indicator being tested be
incorporated into a trading system. But how
can you quantify how effective your signal is?
In this article I will suggest a standardized
process to achieve this goal....
AUTHOR: Jeff ParentDATE: DEC 2002SUBJECT: New Techniques