Cobra's Market View Private Messaging System shows:
Non-Stop Model is another trading system besides the Cobra Impulse System. It’s a much simpler one as it has no stop loss and uses buy and sell at the next open and always in the market, so it’s suitable for those who don’t have time to watch the stock market.
The back test since the year 2004, the inception of CBOE Equities Only Put Call Ratio, is shown as below. It got almost doubled for the past 8 years from 3/9/2004 to 7/20/2011, average 12% return a year, so not bad.
A few things to know before using the model:
- As shown in the back test above, the winning rate is merely above 50% for both short and long which is very typical of a trend following system. It relies heavily on a few long lasting trend to be profitable in the long run.
- Although the model has no stop loss but still it’s absolutely necessary to understand the concept of POSITION SIZING, putting everything into one basket is very very dangerous.
Where to find the trading signal:
The trading signal can be found in my public chart list at 0.0.2 Non-Stop Model. Also I give detailed instructions in the daily Trading Signals report as well. It’s in the same table with the Cobra Impulse System.
Advanced user who wants to use the idea to create his/her own system:
You can find all the visual back test charts in my public chart list, from 8.2.2a Non-Stop Model – 2004 to 8.2.2h Non-Stop Model – 2011. Clearly if you can time the exit well, the winning rate is far beyond 50%. The question is how? The charts in my public chart list use trend line to book partial profits which might not be the best way as it’s too subjective therefore requires some experiences, so you may want to have your own way to book the profit and even improve the entry signals as well.
The table below proves the accuracy of the buy signal given by either BPSPX and BPNDX or NYSI, where none of such signals were false, the market at least advanced for a few days, while 19 out of 26 (73%)cases, the market rose for more than 10 calendar day after the buy signal been given.
The table below proves the sell signal given by RSP:CPCE. There’re only 2 out of 27 cases, the signals were given at exactly the market bottom, while 19 out of 27 (73%) case, the market declined for more than 10 calendar days after the sell signal been given.