Go LONG the Swiss Franc: Symbols: SFH11 and SFX. Record: 49 wins out of 61 trades for 80%. Initial Stop: about 1.2%.
Go LONG the Aussie Dollar: Symbols: ADH11 and FXA. Record: 37 wins out of 45 trades for 82%. Initial Stop: about 1.6%.
Go LONG the New Zealand Dollar: Symbols: NE1H11 and BNZ. Record: 19 wins out of 23 trades for 83%. Initial Stop: about 1.9%.
Notice the contagion risk between our existing Euro Position and that of the Swiss Franc. However, also note that our Euro has already "locked in" profits unless there is a market gap in price. Therefore, we will follow the Swiss Franc in the BLOG. In addition, there is a high degree of contagion risk between the Aussie Dollar and the New Zealand Dollar. We will choose the New Zealand Dollar because the algorithm for the Zealand has a much higher expected profit per trade than the Aussie. Note that both systems have great records anyway.
The algorithms are leading us to believe that the U.S. Dollar may again decline in value. Does any reader have a theory as to why this is the case? Please let me know through a comment directly on to the BLOG or by emailing me or tweeting me at the addresses below. My own theory is that the multiple middle-eastern country turmoil will lead the U.S. to spend yet more money that it does not have, increasing the debt, and further devaluing our currency. Again, I welcome other views. Rarely does a currency move for only one reason.
If you wish to be notified of new posts, let me know at bassanalytics@live.com. I will send you an email every time there is a new post. Follow us on Twitter at www.twitter.com/bassanalytics.Any views expressed herein are provided for informational purposes only and should not be construed in any way as an offer, an endorsement, or inducement to invest. Past performance is not indicative of future results. Investors should discuss any investment with their personal investment counsel. The quotes and symbols used in the BLOG are believed to be reliable, but no guarantees are made with regard to the accuracy. We may have positions in one or more of the ETFs or futures of the computer-generated signals.
Our purpose is to quantitatively analyze markets to identify trends and over-bought/over-sold situations. We use computer programs applied to large amounts of data and trade markets by mathematical algorithms. We track these algorithmically-generated trades with ETFs and Futures. This BLOG is provided free of charge. Any views expressed herein are provided for informational purposes only and should not be construed in any way as an offer, an endorsement, or inducement to invest.
Historical Returns
The following represents the BLOG's 2010 ETF returns vis-a-vis other benchmark investment measures:
------------$Initial-----%Growth----$Return-----$Result
BLOG-----$100,000----26.6%-----$26,646-----$126,646
S&P 500--$100,000----12.8%-----$12,783------$112,783
1.5% CD--$100,000-----1.5%----- $1,500-----$101,500
S&P result excludes dividends.
Return on one Futures Contract: $137,684 (roughly margin of $25,000 to $50,000).
Please see the BLOG page on "Shortcomings and Limitations."
------------$Initial-----%Growth----$Return-----$Result
BLOG-----$100,000----26.6%-----$26,646-----$126,646
S&P 500--$100,000----12.8%-----$12,783------$112,783
1.5% CD--$100,000-----1.5%----- $1,500-----$101,500
S&P result excludes dividends.
Return on one Futures Contract: $137,684 (roughly margin of $25,000 to $50,000).
Please see the BLOG page on "Shortcomings and Limitations."
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