Wednesday, May 10, 2023

Dow Theory Update for May 10th: Does your trend following system have a real edge?

 Does your trading system have a real edge? Easy to know. Test the short side against stock indexes. A persistent bullish bias in stocks is a headwind against shorts. If the trading system has timing accuracy, it should be profitable when going short. The chart below shows the equity curve resulting from shorting the S&P500 with my Composite Trend Indicator (made of the Dow Theory 21C and the Blay Timing Indicator). I applied the shorting signals to an array of ETFs. The numbers speak for themselves and will be posted soon.



Manuel Blay

Editor of

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