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Paratrade Systems Weekly Research News

20 Sep

End of Summer Performance Review

It’s been some time since I posted an historical record of the fuel gauges so we could see where they were right and when they failed. I shall try to be as objective as possible. Let’s start with the S&P 500:

I’ve marked buy signals in green (for when the index gets above 55) and sell signals in red for when the index falls below 25. This is a relatively rare event. The last one happened in June. This has done its job. Aside from a missed rally in May this gauge has set you up to capture all the gains of the last five and a half months. So far so good.

The bond market in the US really didn’t move that mush over the same period so we have been trading for scraps. We’ve had two poor signals of late and a missed rally in August but over the entire period the gauge definitely helped.

The Yen gauge did an excellent job of mainly keeping you short. The buy signals either made small profits or cost you little. Signals here depend on wide swings between 25 and 75 since the gauge is so volatile. (There is a missing arrow for a buy in late August that made no money.)

The Euro gauge is also quite volatile so signals occur above 75 and below 25. You can set up an oscillator based system in the middle. Profits mainly came in April-May since the Euro has moved sideways since then. There was a poor short at the en of August but it was reversed quickly and you would still be long.

I also trade/follow US 30’s but I use a combination of daily and weekly fuel gauge levels for signals. The Euro and Yen gauges are employed as tools to trade C$, A$,SF, and BP. This information is available but at a different rate than just the gauge information. Please pass on all your questions and complaints.

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