After seven consecutive “up” days in the S&P 500 (can you imagine the criminal charges that would be filled if there were seven DOWN days in a row!?!) I decided to mess around with SlopeRules this Friday evening.
I’ll mention as an aside the two new rule sets I just made – Snowball in Hell and Snowball in Heaven – I’ve published, and you can fetch the rules using the Search feature.
For the Snowball in Hell rule set, I wanted to try to come up with something which, even in this always-goes-up market for the past decade, managed to squeeze some short profits out. I put the rules below together, and I used the Optimize function in SlopeCharts to help me.
The results for most superstar stocks (like AAPL and AMZN) were not impressive. I found, however, that instruments which tends to have actual cycles (like USO) were at least able to yield a profit overall.
Naturally, it’s easier to get profits with a bullish rule set, so I made Snowball in Heaven. It is basically the same rules, except optimized for bullish trades.
The results are far, far more impressive. As you can see, even though there are far more lowers than winners, the winning trades have huge returns.
Keep experimenting with SlopeRules, and publishing the good ones. I really think you’ll enjoy the new Search feature in particular.