Archive for June, 2011

California: killing their economy 1 business at a time

June 30, 2011 Leave a comment

$75-$100 billion $100-$125 billion $125-$150 b...

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Keep strangling the golden goose

and in another attempt to reduce their tax revenue:,0,4344787.story


Tradestation system bundles ready to go

June 28, 2011 3 comments

The TradeStation Bundle2 is just about finished; I was proofing the code and appearance today and in the words of Bill Brower, Tradestation programming wizard: “This is very cool”

The “Alphastat” which uses linear regression lines  and statistics to define trends, can be applied to any number of symbols in order to find those symbols, from a  population with the reatest relative strength vs the market  and the rest of the population, and just as importantly, when it goes out of leadership and runs out of steam. It provides an excellent tool to judge when to harvest profits after a good run in a un a unique way.  There are a batch of other indicators too which support many different styles of trading, related to finding moments of relative advantage, and a “state change” in multiple time frames.

A state change occurs when the underlying conditions of the symbol/market make a nonlinear change or turning point. Being able to get alerts at the crucial times is very handy

the frog style trading is continuing to impress. Our supertrader continued his performance with a 6R trade today with less than optimal entries and exits.  Turning out to be a very robust and popular strategy

Example: MCD (see attached case study) was top 5 Frog candidate today (and also tomorrow), and yielded between 3-5R without any effort at adding positions or finetuning exits

I will be asking our Tradestation programmer to code that as a separate module. his estimate is that a system that performs like this goes typically for 5K in the tradestation world.  more to follow 🙂


Tradestation Bundle 1: a set of 6 swing trade mechanical systems, a continuation pattern module (makin it 12 swing systems) and a set of intraday trade management indicators that use rangestat and standard deviation to calibrate profit opportunities

Bundle 2: a set of 6  market and population classification systems that alert you to trends and state changes in all time frames and markets

Bill has seen packages with much less go for 5K each in Tradestation land.  IITM clients and seminar attendees get steep discounts;  contact me for more detailed specs and prices

Blended monthly rebalancing strategy

June 25, 2011 Leave a comment

Image extracted from Systems Engineering Funda...

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Beginning July 1st I will be shifting the 331, 631 and 333 strategies to a “Blended Monthly Rebalancing” strategy in this space.

As a result of the hard work and backtesting of many mastermind members I am satisfied that we have found a ruleset that offers improved reward:risk, and risk management.

The 3 systems we have been following here have done their job just fine, but by refining the list of ETFs to choose from,  incorporating a blend of the 3 and 6 month lookback period, and adding a  monthly moving average filter to the system I believe we have a significantly improved strategy.

I am writing up the rule set for distribution this weekend and will distribute it and a spreadsheet for implementing it to Gold and Silver members. I will continue to publish the current list of holdings in this space for the variation of the ruleset I will follow

Business and friendship

June 23, 2011 Leave a comment

The Bank of England in Threadneedle Street, Lo...

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a friend was asking me about some business related issues, and i tried to articulate how i feel about business and friendship
to me, in my opinion only…
i have friends that i cannot do business with
i have friends that i will not do business with
I only do business with 3-4 friends, and they are all businessmen
i have family that i cannot do business with
i have family that i will not do business with
I only do business with a couple family members
I do business with some people who are not my friends
I am friendly to people who are not my friends
I respect many people who are not yet my friends
I do not have many friends :p
It is much easier to do business with people who are not your friends
Business is a contractual relationship between people
Friendship is a spiritual and emotional connection between people

Daily trading plan review June 19, 2011

June 19, 2011 Leave a comment on defensive sectors;  introduces the concept of “Frog” trading targets



Reflections on Afghanistan from Michael Yon

June 19, 2011 Leave a comment

American author and blogger Michael Yon

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In my judgment, Michael Yon is the most honest and fairminded voice coming out of Iraq and Afghanistan, public or private.  I rely on his insights to form my opinions. Consider buying his 1st edition book; he is an award winning, independent photojournalist
the essay on “Gobar gas” is testimony to the power of a single voice to make a difference in the world

weekend report review June 18, 2011

June 19, 2011 Leave a comment

”]Cover of "Sideways [Blu-ray]"

main themes: playing defense as the bearish trend is now officially strong sdn we are on the boundary of a Volatile Sideways market