This
is an incredibly simple method using only the Dow Industrial 30.
Buy if
the stock is down at least 60% from a three year high.
Sell
the next morning if the stock goes up 10% from your purchase price, or
after 100 days, whichever comes first.
That's it. Who said trading has to be difficult? The proof... If you
back test all the Dow stocks from 1984 to the end of 2002, you get the
following results:
37 trades, 73% winners averaging 10.4%
Each loser had an average loss of 12.93%
Expectancy was 4.1%. (Check the link,
but basically (win rate*win percentage)-(loss rate*loss percentage).
