Introduction

For many of you, this is nothing new. I’ve been writing about a system which purchases a share of an equity when it dips beneath the 3-5-7 moving averages and sell the same share when it crosses any of the set of moving averages.

Mostly, I used to do this in spreadsheet form for the sake of you all to ’show and prove’ my work.

That was then, this is now.

After the Fall

I have to say yesterday was exciting no? Watching that straight line down brought back memories of 2008 when I was researching all night and pounding out posts before I jumped on the train and headed into work. Those were good days for some, and I was one.

But, after spending the last part of several months working on a new means of testing whatever thesis that comes into my addled brain, I thought I would take a couple of minutes in between my morning tea and commute to work and share with you the buy signals that yesterday triggered for the 3-5-7 system.

There are two columns below, first is a ticker and the second is the expectancy that the trading system would have generated between 2007-01-01 and 2010-02-04 for buying and selling one share. (commission and slippage not adjusted for. these are synthetic trades. your mileage may vary)

ticker	expectancy
goog	22.44
cme	21.04
isrg	14.55
ma	11.18
aapl	9.02
azo	7.63
spg	7.6
bxp	7.39
avb	6.79
cf	6.37
x	6.07
shld	5.88
ati	5.83
ice	5.69
wynn	5.67
ben	5.48
fcx	5.03
bni	4.97
apa	4.89
bdx	4.77
pcp	4.66
shw	4.6
amzn	4.55
mon	4.41
cnx	4.35

Theme Song