That looks like a very useful tool and may help explain why DIT hasnt performed as well this month as it did in August. Can you let people on the forum know where you got it? Many thanks
The Daily Index Trader
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That looks like a very useful tool and may help explain why DIT hasnt performed as well this month as it did in August. Can you let people on the forum know where you got it? Many thanks
Astarte3141
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Well I've placed my trades this morning and both seem to be going negative. Is this because there is no correlation this morning as Ian HDIT says? Both indices seem to have moved against me instead of one being positive and the other negative. Is anyone else getting the same?
Alastair10
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Unfortunately both negative at the moment, it is a case of wait and see. Started early September so a pretty poor run so far. If there is a private forum on this DIT would someone please add me to the list.
Thanks & Good Trading to all
Alastair
SteveBanks
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princetrader
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Today doesn't look good, no corrolation between cac/dax, cac was already up more then 3% before we placed trades, looks bit tired. I hope this system is able to cope with market turbulance, becuase we'll seing more of it again!!
It's an old piece of software buried in my collection from the days when I used to day trade US stocks & pairs. Interestingly, looking back over a rather longer period there appears to be much less correlation between DAX & CAC.
The usual idea with correlations is to find which instruments are highly [un]correlated. You can then trade correlated stocks in the same direction, or take opposite positions in uncorrelated stocks.
For example, if Microsoft and Adobe are highly correlated and Microsoft rises following, say, good earnings you might trade Adobe long expecting it to rise in a similar way. If you bought Microsoft directly you might have missed much of its move. In buying Adobe you hope to benefit from a much larger part of the move when (IF!) it comes.
Vice versa for uncorrelated stocks.
Alastair10
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Well out of the DAX and by default we are trading the news...
Any comments on the staking plans with DIT? I was wondering what experience others have had?
Any comments on the staking plans with DIT? I was wondering what experience others have had?
I use the simple compound to keep a tight control of the risk as I don't want a varying amount of risk from the enhanced profits plan.
Thank you Levll
a question, is there some historical backtesting evidence for this system going back previous to 2009? as you should beware that it is easy to fit a system to perform well over a fixed timeframe, which then when forward tested fails to perform... as mentioned in the above post the CAX/DAX correlation can and will vary, especially given how well the German economy is growing.
my 2c..
my 2c..
Yes it would be good if there was an easy way to backtest this further...
some of the more experienced T2W members should have the tools to do such a backtest using Metatrader or equivalent.
Well, yet another losing day, worse still the Fancy Staking Plan kicked in today and with Wednesdays usually doing well bumped my risk right up so took a heavy hit today. Seems we are getting equal if not more losers than winners, which is a disater with this system as you need 2 winners to every loser just to break even. Down a fair bit on this now. Are other people getting suss or losing the faith?
sarnia cherie
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Yup - another losing day. Not impressed so far.
I would seriously get someone to backtest this system over at least 5 years of data and get some performance break down, rather than blindly having faith in the advertising...
someone could also download the free evaluation of PairTradeFinder which will backtest pair-trading strategies of stocks/indices using mean-reversion settings on correlated pairs.
