October 10, 2010

Important: parameters changed.

As a result of back testing I decided to change parameters for both SPY and Bonds from 2,7 to 3.5,7 and 2.3,6 respectively. I removed all the funds from the table as their parameters also need to be adjusted.

I left our old parameters in place in both charts and the table for the time being.

There is no change in signals for bonds, so we stay in. I have a sizable position in bonds in my 401K account as of today.

There is a difference in SPY. We bought SPY according to our 2,7 signal, so we should stay in. I suggest those who did not buy, stay in cash and wait for a signal with our new parameters.  Those who did, watch closely 122 area. If we get a buy signal from our new parameters then you stay in and switch to the new parameters at that time. If we do not get this signal soon that would mean SPY will likely pull back, so cash in the gain and wait for a signal on the new parameters.

Feel free to e-mail if there is a question.

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