Saturday, July 24, 2010

Warning - Round Trip!

The other day I recieved a warning from Fidelity warning me about a round trip exchange.  A round trip is defined as an exchange in and out of a fund within 30 days.  This can result in suspension of exchanging priveledges if done excessively.  Therefore, I am adding additional analysis that attempts to filter for volatility.  The signal recieved on 6/14/2010 and then the signal to sell on 6/30/2010 resulted in a loss, and then the market corrected significantly.  However year-to-date oracole has still outperformed the fund. I am currently sitting on the sidelines until I can improve the oracole strategy.  Below is an image of a draft of the tech tool I am creating (green dots represent buy and red dots represent sell signals):

I feel that I am very close to having a fantastic signal generating tool.

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